Marginal revenue for a monopolist

A. decreases as price decreases because each unit of the good is being sold for a lower price.
B. increases as output increases because demand is inelastic.
C. is constant and equal to price.
D. increases as price decreases because more people are willing and able to purchase the good at a lower price.


A. decreases as price decreases because each unit of the good is being sold for a lower price.

Economics

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Market power exists if a firm can alter:

a) The production function. b) Its own supply curve. c) The market price. d) Its costs of production.

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Answer the following statement true (T) or false (F)

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Economics