A nondiscriminating monopolist earning positive short-run economic profit determines that its current marginal cost is 15 and its current marginal revenue is 20 . To maximize profit, a firm should
a. raise price and increase output
b. raise price and decrease output
c. maintain a constant price and increase output
d. reduce price and increase output
e. shut down
Question 2
A physicians' professional association supports legislation seeking higher quality medical care. According to the special interest theory of regulation, who likely will benefit most from this legislation?
a. Government, through decreased regulation of physician quality.
b. Patients, through reduced prices for medical care.
c. Physicians, through increased prices for medical care.
d. Hospitals, through decreased for physicians' services.
e. Government, since higher quality health care is clearly in the public interest.
Gram-positive and Gram-negative bacteria.
A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ...
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