Which of the following best explains why the monopolist's marginal revenue 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 will decline.
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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If a perfectly competitive firm is a profit-maximizer, it produces where
a. MR>MC b. P>MR c. P = MC d. TR = TC
Price discrimination reveals
A) the inherent greed of Western culture. B) the inability for regulators to stop unethical practices. C) that individuals have different willingness to pay. D) that individuals have the same willingness to pay.
In the above table, if the marginal factor cost is $96, how many workers would be hired?
A) 3 B) 4 C) 5 D) 2
J. J. Joubert, of the Joubert Dairy, tells his friend Jacques that the average revenue he gets for a liter of milk is $1 . We know then that $1 is the dairy's
a. marginal profit b. marginal cost c. price d. total revenue e. total profit