A monopolist can boost up his revenue by
ECONOMICS
JAMB 2014
A monopolist can boost up his revenue by
- A. adjusting both price and output upward
- B. reducing total output to match price
- C. increasing price
- D. reducing price
Correct Answer: B. reducing total output to match price
Explanation
A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm can increase profit by producing one more unit of output
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *