If a monopolist finds that at the present level of output ...

[Redwolflake15]

If a monopolist finds that at the present level of output marginal revenue exceeds marginal cost, the firm should:
 a. shut down.
  b. expand output.
  c. maintain the current output.
  d. reduce output (but still produce).
  e. raise prices.

Question 2

The MU/P equalization principle means consumers will exhaust their expenditure budget so that, in the end, the MU/P ratio is:
 a. zero for each good.
  b. higher for goods the consumer wants the most.
  c. maximized for the goods the consumer wants the most.
  d. higher than TU/P.
  e. the same for each good.

[ergserg]

Answer to Question 1

b

Answer to Question 2

e

[Redwolflake15]

Gracias!

[nathang24]

Excellent