What should a profit maximizing monopolist do if she is currently ...

[jon_i]

What should a profit maximizing monopolist do if she is currently producing where MC < MR?
 a. Increase output until MC = MR.
  b. Decrease output until MC = MR.
  c. Shut down in the long run.
  d. Keep producing at this level.
  e. Operate only in the short run.

Question 2

If a consumer wishes to maximize satisfaction given limited income and MUx/Px< MUy/Py then the consumer should:
 a. do nothing because she/he is in equilibrium.
  b. buy more of X and less of Y.
  c. buy more of Y and less of X.
  d. buy more of both X and Y.
  e. buy less of both X and Y.

[JCABRERA33]

Answer to Question 1

a

Answer to Question 2

c

[jon_i]

Thanks for the timely response, appreciate it

[LegendaryAnswers]

Gracias!