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AP® Microeconomics

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Moderate

Mike's Marginal Cost upshift

APMICR-JFGCK4

Assume that Mike is a non-discriminating monopolist. Due to unforeseen market factors, Mike’s production costs change, shifting his marginal cost curve upward.

Which of the following will occur to Mike’s price and output?

A

Price Decrease; Output Increase

B

Price Decrease; Output Decrease

C

Price Increase; Output remains the same

D

Price Increase; Output Increase

E

Price Increase; Output Decrease