Ask Question
21 August, 12:17

Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:rise. It is not possible to make a determination from the information given. remain unchanged. fall.

+4
Answers (1)
  1. 21 August, 15:28
    0
    Rise

    Explanation:

    A monopoly is defined as a market situation where only one seller determines the supply and price of a product, because they are the only ones that produce it.

    When forms make technological advancements, they are able to make processes cheaper. So there is more money saved that can be used to increase production.

    In this scenario for every product manufactured there is a $40 saved. This excess cash can be put back into the production to increase the output and profit.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers