For a pure monopolist the relationship between total revenue and marginal revenue is such that:
A. marginal revenue is positive when total revenue is at a maximum.
B. total revenue is positive when marginal revenue is increasing, but total revenue becomes
negative when marginal revenue is decreasing.
C. marginal revenue is positive when total revenue is increasing, but marginal revenue
becomes negative when total revenue is decreasing.
D. marginal revenue is positive so long as total revenue is positive.
Answer: C
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A) An increase planned investment spending B) An increase in interest rates C) An increase in money demand D) An increase in the money supply
There is no relationship between the price level and which component of GDP?
A. C B. I C. G D. NX
The slope of the budget line
a. always equals 1. b. equals income divided by price. c. equals the ratio of the prices. d. decreases as we move from left to right.
The free-rider dilemma occurs in the provision of public goods because an individual can realize the benefits of someone else's purchase (consumption) of a public good.
Answer the following statement true (T) or false (F)