For a monopoly, marginal revenue for all units greater than 1 is always:
A. less than price because of the price effect.
B. more than price because of the price effect.
C. more than price because of the quantity effect.
D. less than price because of the quantity effect.
A. less than price because of the price effect.
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Regulating the amount of money in the United States is one of the most important responsibilities of the
A) State Department. B) state governments. C) Treasury Department. D) Federal Reserve. E) U.S. Mint.
Market power allows firms to raise prices significantly above the competitive level
a. True b. False Indicate whether the statement is true or false
The amount by which the quantity demanded exceeds the quantity supplied at a given price is a
A. Balance-of-payments deficit. B. Market surplus. C. Balance-of-payments surplus. D. Market shortage.
For any two goods, A and B, if MUA divided by PA equals 2.5 and MUB divided by PB equals 4.0, then with given income and prices the consumer should
A. buy more of good A and less of good B. B. buy more of good B and less of good A. C. stop because an equilibrium is achieved. D. buy all of good B and no A.