Since a monopoly faces a downward-sloping demand curve,
A. then, as Adam Smith wrote, “the price of monopoly is upon every occasion the highest which can be got.”
B. price always exceeds average revenue.
C. marginal revenue increases as output increases.
D. the monopolist is a price maker.
Answer: D
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What will be an ideal response?
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What will be an ideal response?
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a. the cost of the goods and services he or she buys decreases and his or her real income increases. b. the cost of the goods and services he or she buys increases and his or her real income increases. c. the cost of the goods and services he or she buys increases, but his or her real income remains the same. d. the cost of the goods and services he or she buys increases and his or her real income decreases. e. the cost of the goods and services he or she buys decreases and his or her real income remains the same.