Which of the following statements is true?
a. When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price.
b. When a monopolistic firm decides to increase price, its profit will increase.
c. When a competitive firm sells an additional unit of output, its revenue increases by an amount less than the price.
d. Average revenue is the same as price for both competitive and monopoly firms.
Answer:
a. When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price.
d. Average revenue is the same as price for both competitive and monopoly firms.
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