A monopoly firm is charging the price the market will bear at a ...

[HudsonKB16]

A monopoly firm is charging the price the market will bear at a level of output where MC equals 22 and is increasing, MR equals 20, and average variable cost equals 17 . To maximize profits, the firm should:
 a. increase both output and price.
 b. increase output but decrease the price.
  c. decrease output and increase the price.
  d. decrease both output and price.

Question 2

According to strategic trade policy, international trade largely involves firms that:
 a. enjoy monopolistic power in the domestic market.
  b. have a high initial cost of production.
  c. pursue economies of scale.
  d. have high opportunity costs.
  e. generate adequate employment in the domestic economy.

[Carissamariew]

Answer to Question 1

c

Answer to Question 2

c

[HudsonKB16]

Thanks for the timely response, appreciate it

[isabelt_18]

Excellent