Author Question: A profit-maximizing monopolist that produces in the short run will a. produce the level of output ... (Read 51 times)

mwit1967 · **on:** Jun 30, 2018

A profit-maximizing monopolist that produces in the short run will
a. produce the level of output where marginal revenue exceeds marginal cost by the largest amount
b. increase output as long as the marginal revenue exceeds the marginal cost of producing that unit
c. produce the level of output where average total cost is at a minimum
d. increase price as long as the average revenue exceeds the average total cost
e. produce the level of output where average revenue exceeds average total cost by the largest amount

Question 2

When government regulations force a natural monopoly to produce where price equals average total cost, social welfare is
a. maximized
b. less than it would be without regulation
c. greater than it would be without regulation, but it is not maximized
d. exactly the same as it would be without regulation
e. minimized