问题 单项选择题

A monopolist will continue expanding output as long as:()

A. marginal revenue is positive.

B. marginal revenue is greater than marginal cost.

C. average total costs are declining.

答案

参考答案:B

解析:

The optimum behavior of all firms is to produce until the point where MR = MC. So, the monopolist can increase total profit by increasing production as long as marginal revenue is greater than marginal costs.

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