For a monopoly, marginal revenue is less than price because
A) the firm is a price taker.
B) the firm must lower price if it wishes to sell more output.
C) the firm can sell all of its output at any price.
D) the demand for the firm's output is perfectly elastic.
B
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Firms will continue to increase their purchase of factor inputs as long as ________
A) the marginal product of a given factor is greater than its real factor price B) the marginal cost of a given factor is lower than its marginal product C) their total revenues are greater than their total costs D) all of the above E) none of the above
Under a production quota policy, the government can maintain a particular support price by reducing the quantity supplied. To maintain a particular support price, how must the quota amount change if the demand curve becomes more elastic?
A) Quota amount increases B) Quota amount decreases C) Quota amount does not change D) Quota amount depends on the supply curve
Increases in the overall price level:
A. result in an increase people's dollar-denominated wealth. B. mean that a given number of dollars can buy as much in terms of real goods and services as before. C. tends to cause people to increase their consumption. D. reduce people's real wealth.
Barriers that prevent workers from entering particular labor markets
a. decrease wage rates in those markets b. increase employment in those markets c. decrease discrimination in those markets d. increase profits in those markets e. increase wage rates in those markets