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 $3.50 and marginal revenue is $2.75. Microsoft could increase profits by -leaving both quatity and price unchanged. - decreasing price and increasing output. -leaving both quatity and price unchanged. -decreasing price and leaving output unchanged. -decreasing output and leaving price 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 $3.50 and marginal revenue is $2.75. Microsoft could increase profits by -leaving both quatity and price unchanged. - decreasing price and increasing output. -leaving both quatity and price unchanged. -decreasing price and leaving output unchanged. -decreasing output and leaving price unchanged
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 $3.50 and marginal revenue is $2.75. Microsoft could increase profits by
-leaving both quatity and price unchanged.
- decreasing price and increasing output.-leaving both quatity and price unchanged.
-decreasing price and leaving output unchanged.
-decreasing output and leaving price unchanged
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