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Alinara [238K]
3 years ago
11

Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $45.00; MR = $40.00; P = $55.00. The firm should

Business
1 answer:
Alexeev081 [22]3 years ago
7 0
I encountered this question but it should have choices. The choices were

A) <span>decrease output and increase price.</span>

B) <span>not change output or price.</span>

C) <span>increase output and decrease price.</span>

D) <span>shut down.</span>


The firm should DECREASE OUTPUT AND INCREASE PRICE.

MC is greater than MR thus the need for decrease in output and increase in price. 


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