Author Question: At a certain level of production, the marginal revenue and marginal cost of a monopolist are 8 and ... (Read 70 times)

JGIBBSON · **on:** Jun 29, 2018

At a certain level of production, the marginal revenue and marginal cost of a monopolist are 8 and 6, respectively. Which of the following statements is true in this context?

A) The monopolist should expand production.
B) The monopolist should contract production.
C) The profits of the monopolist are maximized.
D) The profits of the monopolist are minimized.

Question 2

State the type of correlation between the following sets of variables.

a) Consumption and income
b) Education and unemployment
c) Availability of health care and death rate
d) Pollution control measures adopted in Canada, and number of cases of respiratory diseases in Australia

ashely1112 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

a) Consumption and income are likely to be positively correlated.
b) Education and unemployment are likely to be negatively correlated.
c) Health care and death rate are likely to be negatively correlated.
d) The relationship between pollution control in Canada, and number of cases of respiratory diseases in Australia is likely to be a zero correlation.