1. Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. falling.
b. constant.
c. rising.
d. subject to diminishing returns.
2. If a monopolist finds that at the present level of output marginal revenue exceeds marginal cost, the firm should:
a. maintain the current output.
b. expand output.
c. shut down.
d. reduce output (but still produce).
e. raise prices.