Refer to Figure 15-2. Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at

A) Q₄ only.
B) Q₁ or Q₂ only.
C) Q₅ only.
D) Q₃, Q₄, or Q₅ only.

Question

Daesha Klein · Accepted Answer

Final Answer : B, Explanation :  Profit can always be increased by producing one more unit if the marginal revenue (MR) from selling that unit is greater than the marginal cost (MC) of producing it. Choices Q11 and Q12 represent points where MR > MC, indicating that increasing production would increase profit.

Refer to Figure 15-2. Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at

A) Q₄ only.
B) Q₁ or Q₂ only.
C) Q₅ only.
D) Q₃, Q₄, or Q₅ only.

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Learning Objectives

Learning Objectives

Related questions

Refer to Figure 15-2. Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating atA) Q4 only.B) Q1 or Q2 only.C) Q5 only.D) Q3, Q4, or Q5 only.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 15-2. Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at

A) Q₄ only.
B) Q₁ or Q₂ only.
C) Q₅ only.
D) Q₃, Q₄, or Q₅ only.