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Bingel [31]
3 years ago
13

If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits, the firm will:

Business
1 answer:
Serjik [45]3 years ago
7 0

Answer:

A. reduce output and increase price.

Explanation:

In the case of monopolistic firm at the time of profit maximization, the marginal revenue should be equivalent to the marginal cost i.e.

Marginal revenue = Marginal cost

When the marginal cost rises, the cost of generating an additional unit is also rise to equate MR and MC and at the same time the output would be decreased and the price is increased also the price is more than its marginal cos

Therefore the option A is correct

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The phase of the business cycle at which real domestic output is at minimum during a cycle is called:_______
Igoryamba

The phase of the business cycle at which real domestic output is at a minimum during a cycle is called the trough

This is further explained below.

<h3>What is the business cycle?</h3>

Generally, The term "business cycle" refers to the persistent upswings and downswings in broad indices of economic activity, such as production, employment, income, and sales.

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complete question

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2 years ago
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