Author Question: An unregulated monopoly finds that its marginal cost exceeds its marginal revenue. In order to ... (Read 86 times)

Cooldude101 · **on:** Jun 29, 2018

An unregulated monopoly finds that its marginal cost exceeds its marginal revenue. In order to increase its profit, the firm will

A) raise its price and decrease its output.
B) lower its price and increase its output.
C) raise its price and increase its output.
D) continue to produce this level of output because any change will lower its profit.

Question 2

If the value of marginal product of the last worker hired is 24 and the wage rate is 25, then

A) more workers should be hired.
B) the worker should be fired.
C) the firm has hired the profit maximizing number of workers.
D) the firm is earning 1 of profit from this worker.