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- Subject
- Monopolyeconomics-mcqs › monopoly
- Published
- 30 May 2019
- Last updated
- 28 May 2026
What action should a monopolist take when marginal revenue is greater than marginal cost?
Multiple choice question for Monopoly. Select an option, then review the explanation below.
Explanation
When marginal revenue exceeds marginal cost, the monopolist can increase profits by producing more units. Therefore, the optimal decision is to expand output.
More Monopoly MCQs
Practice related questions from the same subject.
- 1.Which option best describes the concept of price discrimination?
- 2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
- 3.In a pure monopoly market, how does the price compare to the marginal revenue?
- 4.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?
- 5.What is a common outcome of public ownership in natural monopolies?