Author Question: If the demand shifts, then for a profit maximizing monopolist, A) price will change while ... (Read 31 times)

madam-professor · **on:** Jul 1, 2018

If the demand shifts, then for a profit maximizing monopolist,

A) price will change while quantity will remain constant.
B) price will change and quantity will change.
C) Both A and B.
D) Neither A nor B.

Question 2

The Law of Diminishing Marginal Returns could also be termed the Law of Increasing Marginal Costs.

Indicate whether the statement is true or false

onowka · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

C

Answer to Question 2

True . Since MC = w/MPL in the short run, the fact that MPL eventually declines means that MC must eventually increase.