If a monopolist wishes to increase its output and quantity sold
A. it must reduce its price, so its marginal revenue is greater than its price.
B. it must raise its price, so its marginal revenue is less than its price.
C. it must raise its price, so its marginal revenue is greater than its price.
D. it must reduce its price, so its marginal revenue is less than its price.
Answer: D
You might also like to view...
Which of the following is likely to happen due to quantitative easing by the Fed?
A) A rightward shift of the demand curve for bank reserves B) A leftward shift of the supply curve of bank reserves C) A leftward shift of the demand curve for bank reserves D) A rightward shift of the supply curve of bank reserves
A persistent surplus of pounds at a given fixed exchange rate (in dollars per pound) is evidence that the pound is ________ versus the dollar. This surplus can be reduced or eliminated through a ________ of the pound
A) overvalued; revaluation B) overvalued; devaluation C) undervalued; devaluation D) undervalued; revaluation
Adam Smith's pin factory and Henry Ford's automobile assembly line are examples of
a. Product lines b. Functionally organized firms c. Inefficient processes d. In-line production
Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that
a. the nation is producing beyond its capacity, so inflation will occur. b. the nation is not using all available resources or is using inferior technology or both. c. the nation is producing an efficient combination of goods. d. there will be a large opportunity cost if the nation tries to increase production of any good.