A pure monopoly firm will never charge a price in the inelastic range of its demand curve because lowering price to get into this region will:
A. increase total revenue, increase total cost, and decrease profit.
B. increase total revenue, decrease total cost, and decrease profit.
C. decrease total revenue, increase total cost, and decrease profit.
D. decrease total revenue, total cost, and profit.
Answer: C
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Distinguish between a voluntary export restraint and a quota
What will be an ideal response?
Expected value refers to the
A. Present value of a future payment. B. Difference in the rates of return on risky and safe investments. C. Probable value of a future payment, including the risk of nonpayment. D. Future value of a current payment.
Resources are being used efficiently when:
A) they are also used equitably. B) there are still gains from trade available. C) scarcity is no longer an issue. D) every opportunity to make people better off has been utilized.
Which of the following is not included in personal consumption?
A. Purchases of new construction by consumers B. Payments for cable and Internet services to homes C. New furniture and appliances bought by homeowners D. Food purchased at supermarkets