A monopolist will operate at the quantity where: a. MR = MC and ...

[geoffrey]

A monopolist will operate at the quantity where:
 a. MR = MC and charge a price equal to marginal revenue.
 b. MR = MC and charge a price equal to average variable cost.
 c. MR = MC and charge a price corresponding to demand at that level.
 d. MR = MC and charge a price corresponding to average total cost at that level.

Question 2

Which of the following cases exhibit increasing returns to scale?
 a. Output increases by 5 percent when inputs are increased by 6 percent.
  b. Output increases by 6 percent when inputs are increased by 5 percent.
  c. Output increases by 7 percent when inputs are increased by 7 percent.
  d. Output declines by 2 percent when inputs are increased by 1 percent.

[Shshxj]

Answer to Question 1

c

Answer to Question 2

B