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. |
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b) |
Malfoy will increase price and increase quantity of output. |
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c) |
Malfoy will increase price and reduce quantity of output. |
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d) |
Malfoy will reduce price and increase quantity of output. |
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e) |
Malfoy will reduce price and decrease quantity of output. |
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