Momocita is the only supplier of momos in the market. It is a profit maximizing, single-price monopolist with a constant Marginal Cost of $5, no fixed cost and faces a typical downward sloping demand curve. It currently charges a price of $14.5 for a plate of momos. If it increases its price to $15 a plate, which of the statements below is TRUE? Revenues will increase, costs increase and profits increase. Revenues will decrease, costs increase and profits decrease. Revenues will increase, costs increase and profits decrease. Revenues will increase, costs decrease and profits increase. Revenues will decrease, costs decrease and profits decrease. Revenues will increase, costs decrease and profits decrease.

Momocita is the only supplier of momos in the market. It is a profit maximizing, single-price monopolist with a constant Marginal Cost of $5, no fixed cost and faces a typical downward sloping demand curve. It currently charges a price of $14.5 for a plate of momos. If it increases its price to $15 a plate, which of the statements below is TRUE? Revenues will increase, costs increase and profits increase. Revenues will decrease, costs increase and profits decrease. Revenues will increase, costs increase and profits decrease. Revenues will increase, costs decrease and profits increase. Revenues will decrease, costs decrease and profits decrease. Revenues will increase, costs decrease and profits decrease.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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