The pure monopolist who is nondiscriminating must decrease price on all units of a product sold in order to sell additional units. This explains why:
A. a monopoly has a perfectly elastic demand curve.
B. there are barriers to entry in pure monopoly.
C. marginal revenue is less than average revenue at all levels of output.
D. total revenues are greater than total costs at the profit-maximizing level of output.
Answer: C
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a. what and how much to produce. b. how to produce. c. how to distribute goods and services to the population. d. All of these.
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A) depreciate; lower B) appreciate; lower C) depreciate; higher D) appreciate; higher
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A) reduce aggregate output and raise the price level. B) reduce the price level and raise aggregate output. C) reduce both aggregate output and the price level. D) raise both aggregate output and the price level.
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a. True b. False Indicate whether the statement is true or false