Asked by
jainav patel
on Nov 26, 2024Verified
If the variable costs of a profit-maximizing pure monopolist decline, the firm should
A) produce more output and charge a higher price.
B) produce more output and charge a lower price.
C) reduce both output and price.
D) raise both output and price.
Variable Costs
Costs that change in proportion to the level of output produced.
Pure Monopolist
A single seller in a market who has exclusive control over a product or service, facing no competition.
Output
The aggregate quantity of products or services generated by a company, sector, or economic system within a specified timeframe.
- Understand the impact of changes in variable costs on monopolist’s pricing and output decisions.
Verified Answer
KG
Learning Objectives
- Understand the impact of changes in variable costs on monopolist’s pricing and output decisions.