A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be

a. at the minimum point of the marginal cost curve
b. less than the (total) revenue-maximizing quantity
c. equal to the (total) revenue-maximizing quantity
d. in the unit elastic segment of the demand curve
e. in the inelastic segment of the demand curve

 Suppose that at an output of 1,000 units, a monopolist has marginal cost of $40, marginal revenue of $30, average variable cost of $30, and average total cost of $50. In order to maximize profit or minimize loss in the short run, the firm should
a. shut down
b. continue to produce 1,000 units
c. produce fewer than 1,000 units but still operate
d. produce more than 1,000 units
e. increase its plant size to gain economies of scale

For the first question, the profit-maximizing quantity for a monopolist facing an upward-sloping marginal cost curve can be found by comparing marginal cost with marginal revenue. The monopolist will choose the quantity at which marginal cost equals marginal revenue.

To find the profit-maximizing quantity, you need to compare the given marginal cost curve with the marginal revenue curve. If the marginal cost curve intersects the marginal revenue curve at a point where marginal cost is higher, then the monopolist will choose a quantity lower than the revenue-maximizing quantity. Therefore, the answer is (b) less than the (total) revenue-maximizing quantity.

For the second question, to determine whether the firm should maximize profit or minimize loss, you need to compare the firm's marginal cost with its marginal revenue. If the marginal revenue is greater than the marginal cost, the firm is making a profit and should continue to operate and produce the quantity at which the marginal revenue equals marginal cost.

In this case, the given marginal cost is $40 and the marginal revenue is $30. Since $30 is less than $40, the firm is making a loss on each additional unit produced. Therefore, to minimize the loss, the firm should produce fewer than 1,000 units but still operate. Therefore, the answer is (c) produce fewer than 1,000 units but still operate.