Macmillan Learning Monopoly: End of Chapter Problem 11. Sandy owns the only landscaping company in town that specializes in flower gardens-thus, Sandy is a monopolist. At a quantity of 10 flower gardens, the marginal cost of producing one more flower garden is $300, and the marginal revenue from selling one more flower garden is $250. To maximize profits, Sandy should O O O decrease output to the point where MR = MC and increase price based on the demand curve. decrease output to the point where MR > MC and increase price based on the demand curve. decrease output to the point where MR = MC. The market price won't change because monopolists are price takers. increase output to the point where MR = MC and decrease price based on the demand curve.
Macmillan Learning Monopoly: End of Chapter Problem 11. Sandy owns the only landscaping company in town that specializes in flower gardens-thus, Sandy is a monopolist. At a quantity of 10 flower gardens, the marginal cost of producing one more flower garden is $300, and the marginal revenue from selling one more flower garden is $250. To maximize profits, Sandy should O O O decrease output to the point where MR = MC and increase price based on the demand curve. decrease output to the point where MR > MC and increase price based on the demand curve. decrease output to the point where MR = MC. The market price won't change because monopolists are price takers. increase output to the point where MR = MC and decrease price based on the demand curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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