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If a monopolist is producing a quantity where marginal revenue is equal to $125 and the marginal cost is equal to $125, the monopolist should:
A. increase production and lower the price to maximize profits
B. decrease production and increase the price to maximize profits
C. continue producing at the current price to maximize profits
D. increase production and increase the price to maximize profits
E. decrease production and decrease price to maximize profits
Discuss the concepts of technological and economic efficiency with refer- ence to this example. Describe the optimal production strategy for the firm.
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Do business firms operating in competitive markets have a strong incentive to serve the interest of consumers? Are “good intentions” necessary if individuals are going to engage in actions that are helpful to others? Discuss.
1. budget constraint.antonio buys 8 new college textbooks during his first year at school at a cost of 50 each. assume
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Analysis regarding how such a supplier makes such a determination in order to maximize the firm's profits. Include in your response.
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Is the problem here one of supply, or demand, or both? Is this a shift-factor problem or a quantity-supplied or quantity-demanded problem?
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