Monopolists, like firms in other market structure, strive to maximize profit. Microsoft when it first came out with its Windows operating system was thought to be a monopolist. Assume that Microsoft is a monopolist and calculates that at its present output level, marginal cost is $5.50 and marginal revenue is $4.50. Microsoft could increase profits by Multiple Choice decreasing output and leaving price unchanged. increasing price and decreasing output. decreasing price and increasing output. leaving both quatity and price unchanged. decreasing price and leaving output unchanged.
Monopolists, like firms in other market structure, strive to maximize profit. Microsoft when it first came out with its Windows operating system was thought to be a monopolist. Assume that Microsoft is a monopolist and calculates that at its present output level, marginal cost is $5.50 and marginal revenue is $4.50. Microsoft could increase profits by Multiple Choice decreasing output and leaving price unchanged. increasing price and decreasing output. decreasing price and increasing output. leaving both quatity and price unchanged. decreasing price and leaving output unchanged.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q14
Monopolists, like firms in other market structure, strive to maximize profit. Microsoft when it first came out with its Windows operating system was thought to be a monopolist. Assume that Microsoft is a monopolist and calculates that at its present output level, marginal cost is $5.50 and marginal revenue is $4.50. Microsoft could increase profits by
Multiple Choice
-
decreasing output and leaving
price unchanged. -
increasing price and decreasing output.
-
decreasing price and increasing output.
-
leaving both quatity and price unchanged.
-
decreasing price and leaving output unchanged.
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