alexisnavarro6484 alexisnavarro6484

08-11-2019
Business

contestada

A reduction in a monopolist's fixed costs would Select one: a. not effect the profit-maximizing price or quantity. b. possibly increase, decrease or not effect profit-maximizing price and quantity, depending on the elasticity of demand. c. increase the profit-maximizing price and decrease the profit-maximizing quantity produced. d. decrease the profit-maximizing price and increase the profit-maximizing quantity produced.

Respuesta :

DelcieRiveria DelcieRiveria

08-11-2019

Answer:

The correct answer is option a.

Explanation:

The monopolist determines their equilibrium quantity and price through the intersection of marginal cost and marginal revenue.

A reduction in fixed costs will change the profits to the monopolist but it will not change the equilibrium price and quantity. This is because the change in fixed costs will not affect marginal revenue and marginal cost.

So even after a change in fixed costs, the optimal; output level remains the same.

Answer Link

Otras preguntas

How many of the following have a 4 oxidation number of central atom: BaSO₄, SOCl₂, SF₄, H₂SO₃, H₂S₂O₇, SO₃? a) 1 b) 2 c) 3 d) 4

● सामान्यतः एकूण गुंतवणुकीवर 80 व्या कलमान्वये विविध प्रकारच्या गुंतवणुकीपैकी जास्तीत जास्त किती रुपयांपर्यंत वजावट मिळते ?

the genes detirmine all the features found un living cells such as the structure of the ______,_______,color of the_______,etc.

QUESTION 4 Read the extract below and answer the questions that follow 4.1 4.2 WOMEN POWER AT ENGEN PREP FORWARD After matriculating, Vuyile was offered a full

Which three of the following species have been successfully tested using the information procedure for the measurement of meta-cognition?A) ChimpanzeesB) Dolphi

If the date is December 21, and the observer is at a latitude of 49 degrees north, what is the height of the sun at local noon on that date?

Which of the following allows windows to quickly be resized by clicking the title bar of the window and dragging it to the top, sides, or middle of the screen?

What fitness benefits can a female received from a potential mate?

A laboratory employee forgot his user ID badge at home and uses another lab employee's badge to access the computer system. What controls should have been in pl

Kick beyond neutral zone- Play 1: Fourth and 10 on team K's 30 yardline. The snap goes to K1, who fakes a punt and starts to run. When K1 is at his 35 yardline,