When a monopoly increases its output and sales,
a. both the output effect and the price effect work to increase total revenue.
b. the output effect works to increase total revenue, and the price effect works to decrease total revenue.
c. the output effect works to decrease total revenue, and the price effect works to increase total revenue.
d. both the output effect and the price effect work to decrease total revenue.
b
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A monopolistically competitive firm makes positive economic profits if ________
A) price is less than average total cost B) price is higher than average total cost C) price equals marginal cost D) price equals average fixed cost
Which of the following is a similarity between a monopoly and an oligopoly with differentiated products?
A) There are no barriers to entry in both markets. B) The long-run equilibrium price in both markets exceeds marginal cost. C) There is a single seller in both markets. D) Firms in both the markets earn zero profit in the long run.
When do new firms enter a perfectly competitive market? When does entry stop?
What will be an ideal response?
A country running a balance of payments surplus in a fixed exchange rate system may have to ____ its currency
a. depreciate b. devalue c. revalue d. appreciate