The monopolist's marginal revenue is less than price since
A. the demand function is horizontal.
B. additional units can only be sold if the price is lowered on all units sold.
C. average total cost is declining.
D. average revenue is also less than price.
Answer: B
You might also like to view...
When a single tax is imposed, the excess burden is proportional to the compensated elasticity of demand and to the square of the tax rate.
A. True B. False C. Uncertain
Why do government debt managers often use interest-rate swaps?
What will be an ideal response?
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: During the late 1990s, productivity in many U.S. industries increased because of technological advances. (See Figure 8.6.)
A. A. B. B. C. C. D. D.
If the Federal Reserve conducts an open market purchase, the
A) interest rate will not change. B) interest rate will increase. C) money supply is decreased. D) interest rate will decrease.