Question : 31) If a single-price monopoly presently producing an output at : 1384237

31) If a single-price monopoly is presently producing an output at which marginal revenue is less than marginal cost, it can increase its profits by

A) reducing output and raising prices.

B) reducing output and holding prices unchanged.

C) expanding output and lowering price.

D) expanding output and raising price.

E) reducing barriers to entry.

32) For a monopolist, the profit-maximizing level of output occurs where

A) MR = MC.

B) MR = AC.

C) MC = 0.

D) MC = AR.

E) MC = price.

33) A monopolist will be earning positive economic profits

A) at all times, since it controls the market.

B) when price equals marginal cost.

C) whenever marginal revenue equals marginal cost.

D) when price exceeds average total cost.

E) whenever marginal revenue is positive.

34) At the profit-maximizing level of output for a single-price monopolist, price

A) always exceeds average total cost.

B) equals marginal cost.

C) exceeds marginal cost.

D) equals marginal revenue.

E) is below marginal revenue.

35) Which of the following statements about single-price monopolists is correct?

A) The profit-maximizing level of output is the same as the total revenue-maximizing level of output.

B) The average revenue curve lies above the demand curve.

C) AR is greater than MR.

D) Price elasticity of demand will be equal to one if the firm is profit-maximizing.

E) Price equals marginal cost at the profit-maximizing level of output.

36) Monopolistic firms do not have supply curves because

A) they are not constrained by the marginal costs of production.

B) their output is a fixed quantity.

C) monopolists get to choose their price-quantity combination along the demand curve.

D) monopolists face a given market price.

E) their marginal costs cannot be calculated.

37) A single-price monopolist is currently producing an output level where price equals marginal cost, and profits are positive. In order to maximize profits, this monopolist should

A) shut down.

B) increase production and reduce price.

C) decrease production and increase price.

D) not change his output level, because he is currently earning profits.

E) reduce price and let production adjust to the new price.

38) A single-price monopolist is currently producing an output level where P = $20, MR = $13, ATC = $15, and MC = $14. In order to maximize profits, this monopolist should

A) shut down.

B) increase production and reduce price.

C) decrease production and increase price.

D) not change the output level, because the firm is currently at the profit-maximizing output level.

E) There is insufficient information to make a recommendation.

39) A single-price monopolist is currently producing an output level where P = $320, MR = $260, ATC = $280, and MC = $200. In order to maximize profits, this monopolist should

A) shut down.

B) increase production and reduce price

C) decrease production and increase price.

D) not change the output level because the firm is currently at the profit-maximizing output level.

E) There is insufficient information to make a recommendation.

40) A single-price monopolist is currently producing an output level where P = $320, MR = $200, AVC = $327, and MC = $200. In order to maximize profits, this firm should

A) increase production and reduce prices.

B) decrease production and increase prices.

C) not change its output level, because the firm is currently at its profit maximizing level.

D) shut down.

E) There is insufficient information to make a recommendation.