Post Utme Igbinedion University 2017 Economics Question 37

Practice objective / multiple choice question 37 from the 2017 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2017 Economics Objective / Multiple Choice
Question 37 POST_UTME_IGBINEDION_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a pure monopoly market with a downward-sloping demand curve. If the monopolist's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at a point where MR > MC, what is the likely outcome for the monopolist's profit-maximizing quantity and price?

Answer Options

Correct Answer A. The monopolist will produce a quantity where MR = MC and price will be higher than the equilibrium price.
B. The monopolist will produce a quantity where MR > MC and price will be lower than the equilibrium price.
C. The monopolist will produce a quantity where MR < MC and price will be higher than the equilibrium price.
D. The monopolist will produce a quantity where MR = MC and price will be equal to the equilibrium price.
Correct Answer
A
Correct Option:
The monopolist will produce a quantity where MR = MC and price will be higher than the equilibrium price.

About This Question

This is Post Utme Igbinedion University 2017 Economics Question 37. It is one of the objective questions from the 2017 Post Utme Igbinedion University Economics examination.

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