Reduction in monopolist fixed costs

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Reference no: EM131074894

A reduction in a monopolist’s fixed costs would:

a. possibly increase, decrease or not affect profit-maximizing price and quantity, depending on the elasticity of demand.

b. decrease the profit-maximizing price and increase the profit-maximizing quantity produced.

c. increase the profit-maximizing price and decrease the profit-maximizing quantity produced.

d. not affect the profit-maximizing price or quantity.

Reference no: EM131074894

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