You manage a plant that assembles digital and optical ingredients to manufacture high definition cameras. You forecast that the demand for your cameras in 2018 is similar to that in 2017, so are the costs of the raw ingredients. The land lease of your plant, however, is decreasing by 10% in 2018 compared to in 2017. You should decrease the price of your cameras if your plant operates in which of the following market settings?

(A) Monopoly.

(B) Monopolistic competition.

(C) Perfect competition.

(D) None of the above.

Which of the following is true?

(a) A monopolist produces on the inelastic portion of its demand.

(b) A monopolist always earns an economic profit.

(c) The more inelastic is the demand, the closer is the marginal revenue to price.

(d) In the short run, a monopoly will shut down if P < AV C.