Question

A monopolist's marginal cost curve has shifted upward. What is going to happen to the monopolist's price, output rate, and economic profits?

Short answer

As demand for digital devices increased, more manufacturers entered the market, and many existing manufacturers increased production. Mineral demand has risen as a result.

The digital device industry, which can be classified as a declining cost industry, is experiencing the same phenomenon.

Step-by-step solution

Introduction.

The minimal cost is the additional cost incurred in manufacturing and selling one (or a few) additional units of output. This stranglehold is confronted with a typical Row typical price graph as well as an upwardly sloping changeable costs curve.

Given Information.

The Given information are that,

The marginal cost curve of a monopolist has shifted upward.

Explanation.

Minerals are used as inputs in the production of digital devices. As demand for digital devices grew, more manufacturers entered the market, while many existing manufacturers expanded production.

This has increased the demand for minerals (which are used as inputs in the manufacture of digital devices), resulting in increased production and supply.

Causes of high production.

Mineral prices have fallen as a result of the increased supply. As mineral prices have fallen, so have digital device manufacturers' input costs, prompting them to lower the prices of their finished goods (digital devices).

Long-run market price reductions for these devices have occurred in this manner.

Output results in Long-run reductions.

A decreasing cost industry is one in which increased output results in long-run reductions in input costs as well as prices.

Because the digital device industry is experiencing the same phenomenon, it can be classified as a declining cost industry.