Post Utme Crawford University 2017 Economics Question 33

Practice objective / multiple choice question 33 from the 2017 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2017 Economics Objective / Multiple Choice
Question 33 POST_UTME_CRAWFORD_UNIVERSITY • 2017 • ECONOMICS • objective

A monopolist faces a demand curve with an elasticity of -2. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output and price?

Answer Options

Correct Answer A. The firm will increase its output and lower its price.
B. The firm will decrease its output and lower its price.
C. The firm will increase its output and raise its price.
D. The firm will decrease its output and raise its price.
Correct Answer
A
Correct Option:
The firm will increase its output and lower its price.

About This Question

This is Post Utme Crawford University 2017 Economics Question 33. It is one of the objective questions from the 2017 Post Utme Crawford University Economics examination.

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