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.