Which of the following best explains why marginal revenue for a monopolist is less than the sales price?
a. To sell more units, the monopolist must reduce price on all units sold
b. As the monopolist expands output, the average total cost of production declines.
c. The monopolist charges each consumer the highest possible price.
d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
a
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The above table has the demand and supply schedules for money. What is the equilibrium nominal interest rate?
A) 8 percent B) 7 percent C) 6 percent D) 5 percent E) 9 percent
If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________
A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged
Treasury bills are government IOUs that mature within a year
Indicate whether the statement is true or false
For lunch, Ramon always eats either a slice of pizza or a hamburger. His weekly lunch budget is $48. Each hamburger costs $6 and each pizza slice costs $3. When deciding how much of each good to buy, Rick knows that 2 hamburgers and 4 pizza slices will give him a utility of 8. What is Ramon’s utility at his utility-maximizing point?
a. 32 b. 48 c. 40 d. 24