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.
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Macroeconomics is the study of individual economic markets
Indicate whether the statement is true or false
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.
In monopolistically competitive industries, firms find it easy to enter and exit the market in the long run.
Answer the following statement true (T) or false (F)
Other things being equal, a price-discriminating firm will charge less to the customers who
A) have the lowest incomes. B) have the least elastic demand for its product. C) have the most elastic demand for the product. D) are the most rational in making their decisions.