Author Question: Suppose that at an output of 1,000 units, a monopolist has marginal cost of 40, marginal revenue of ... (Read 443 times)

j.rubin · **on:** Jun 30, 2018

Suppose that at an output of 1,000 units, a monopolist has marginal cost of 40, marginal revenue of 30, average variable cost of 30, and average total cost of 50 . In order to maximize profit or minimize loss in the short run, the firm should
a. shut down
b. continue to produce 1,000 units
c. produce fewer than 1,000 units but still operate
d. produce more than 1,000 units
e. increase its plant size to gain economies of scale

Question 2

Which of the following groups benefits from regulation, according to the special interest theory of regulation?
a. all consumers
b. all producers
c. only certain consumers
d. only certain producers
e. society as a whole