At an output level of 100, a monopolist faces MC = 15 and MR = ...

[michelleunicorn]

At an output level of 100, a monopolist faces MC = 15 and MR = 17. At output level q = 101, the monopolist's MC = 16 and MR = 15. To maximize profits, the firm
 
  A) should produce 100 units.
  B) should produce 101 units.
  C) cannot maximize profits.
  D) is not a monopoly.

Question 2

Short-run costs are never equal or lower than long-run cost.
 
  Indicate whether the statement is true or false

[gcook]

Answer to Question 1

A

Answer to Question 2

False. Since the long-run curve envelopes all short-run curves there is always a level of output where short-run cost are equal to long-run cost. However, short-run cost can never be lower than long-run cost.