« previous next »

Author Question: If a profit-maximizing monopolist finds that marginal cost is increasing and exceeds marginal ... (Read 79 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
If a profit-maximizing monopolist finds that marginal cost is increasing and exceeds marginal revenue, it should:
 a. increase output and decrease price.
  b. increase price and decrease output.
  c. decrease both price and output.
 d. increase both price and output.

Question 2

How is the optimal level of input usage to produce a certain output identified with the help of isocosts and isoquants?


juwms

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

Let us assume a firm wants to produce 15,000 units of a good annually. The least-cost combination of inputs can be obtained from the point of tangency between the isoquant depicting an annual output of 15,000 units and the lowest isocost line achievable for this level of production.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes. Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes.
Erythroblastosis fetalis. (a) The condition occurs with an RH+ father and RH– mother. (b) First preg Erythroblastosis fetalis. (a) The condition occurs with an RH+ father and RH– mother. (b) First preg
The Increasing Cost of Health Care, 1960–2010 The Increasing Cost of Health Care, 1960–2010
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
Video: Cellular slime mold life cycle Animation

For a complete list of videos, visit our video library