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The Figure Below Illustrates the Cost and Revenue Structure for a Monopoly

Question 28

Multiple Choice

The figure below illustrates the cost and revenue structure for a monopoly firm.
Figure 11-17
The figure below illustrates the cost and revenue structure for a monopoly firm. Figure 11-17 Refer to Figure 11-17. If the monopoly firm is currently producing Q<sub>3</sub> units of output, then a decrease in output will necessarily cause profit to A) remain unchanged. B) decrease. C) increase as long as the new level of output is at least Q<sub>2</sub>. D) increase as long as the new level of output is at least Q<sub>1</sub>.
Refer to Figure 11-17. If the monopoly firm is currently producing Q3 units of output, then a decrease in output will necessarily cause profit to


A) remain unchanged.
B) decrease.
C) increase as long as the new level of output is at least Q2.
D) increase as long as the new level of output is at least Q1.

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