Economics -Q37

Economics -Q37 Online Services


You are a profit-maximizing consultant specializing in monopolies.  Three firms seek your advice but, in each case, the information the firm can provide is incomplete.  You will be able, however, to recommend one of the following short-run actions and write a justification of your proposal.  To verify your answer and for some additional graphing practice, try sketching the diagram in each case.
Recommended actions

  1. Remain at current output level.
  2. Increase output.
  3. Decrease output.
  4. Shut down.
  5. Uncertain—the figures provided cannot possibly be correct.


A 6.40 3.10 _______ 1000 6400 3.00 _______ 3.24


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Recommendation: _______


B 12.80 _______ _______ 2000 _______ 12.80 12.00 9.24


Recommendation: _______


C 5.00 4.00 30,000 _______ _______ 4.00 5.10 5.05


Recommendation: _______

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