Malfoy Corporation is a monopolist. Its marginal costs decrease (i.e., its entire marginal-cost curve shifts downward). How will the firm change its price and quantity as a result?




Question 12 options:




a)
Malfoy will increase price and leave quantity of output unchanged.










b)
Malfoy will increase price and increase quantity of output.










c)
Malfoy will increase price and reduce quantity of output.










d)
Malfoy will reduce price and increase quantity of output.










e)
Malfoy will reduce price and decrease quantity of output.

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You have an imperfect set of choices
The corporation will maximise its profit taking whatever set of choices are validated by its position in the market