If the demand shifts, then for a profit maximizing monopolist, ...

[madam-professor]

If the demand shifts, then for a profit maximizing monopolist,
 
  A) price will change while quantity will remain constant.
  B) price will change and quantity will change.
  C) Both A and B.
  D) Neither A nor B.

Question 2

The Law of Diminishing Marginal Returns could also be termed the Law of Increasing Marginal Costs.
 
  Indicate whether the statement is true or false

[onowka]

Answer to Question 1

C

Answer to Question 2

True . Since MC = w/MPL in the short run, the fact that MPL eventually declines means that MC must eventually increase.

[madam-professor]

Wow, this really help

[marict]

Thanks for the timely response, appreciate it