Which of the following is NOT correct about a single-price monopoly?
A) Maximum profit is found where demand is the most inelastic.
B) Marginal revenue is negative when demand is inelastic.
C) Marginal revenue is positive when demand is elastic.
D) To sell more output, the firm must lower its price.
E) To maximize its profit, the firm produces so that marginal revenue equals marginal cost.
A
You might also like to view...
If the price of cappuccino on campus falls from $5 to $3 and the quantity demanded increases from 15 to 20, then the price elasticity of demand is approximately
A) 0.47, which mean cappuccino is inelastic. B) 0.57, which means cappuccino is inelastic. C) 1.75, which means cappuccino is elastic. D) 2.25, which means cappuccino is elastic.
In the one-input model, a convex producer choice set implies an upward sloping marginal cost curve.
Answer the following statement true (T) or false (F)
Consider a labor market in equilibrium. If the demand curve shifts to the right while the supply curve shifts to the left, then the wage rate in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.
Technological advancements in the antebellum period were
(a) constant and stable. (b) almost non-existent. (c) concentrated in manufacturing. (d) slow in coming but labor-saving—especially in agriculture—when they emerged.