If a monopolist wishes to increase its output and quantity sold
A) it must reduce its price, so its marginal revenue is greater than its price.
B) it must reduce its price, so its marginal revenue is less than its price.
C) it must raise its price, so its marginal revenue is greater than its price.
D) it must raise its price, so its marginal revenue is less than its price.
B
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Today the U.S. dollar is worth 1.5 Canadian dollars. Because of changes in economic conditions, people come to believe that by the end of the month the U.S. dollar will be worth 1.2 Canadian dollars. This belief
A) increases the demand for U.S. dollars today. B) decreases the demand for U.S. dollars today. C) decreases the demand for Canadian dollars today. D) decreases the value of exports to Canada.
The Solow model is used to explain ________
A) why some economies experience higher rates of growth than others B) the relationship between price and quantity demanded C) the relationship between the rate of inflation and the rate of unemployment D) the notion of opportunity cost
If a macroeconomist studying the causes of unemployment asserts that a particular change in technology will cause the rate of unemployment to decrease by ten percent, then this macroeconomist is at which step in the process of developing an economic
model? A) Identify the endogenous variables. B) Develop a model. C) Compare the model with the data. D) Identify the exogenous variables. E) Conduct prediction and policy analysis.
As the U.S. price level decreases, expenditures by which of the following will increase?
A. Businesses B. Consumers C. The rest of the world D. All of these will increase their expenditures.