For a pure monopolist, marginal revenue is less than price because:
A. the monopolist's demand curve is perfectly elastic.
B. the monopolist's demand curve is perfectly inelastic.
C. when a monopolist lowers price to sell more output, the lower price applies to all units sold.
D. the monopolist's total revenue curve is linear and slopes upward to the right.
Answer: C
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Which of the following insurance practices attempts to minimize the adverse selection problem insurance companies face?
A) prevention of fraud B) risk-based premiums C) restrictive provisions D) deductibles
The Fed usually sets a higher reserve requirement for savings accounts than for checking accounts
a. True b. False Indicate whether the statement is true or false
Pietro is 40 years old and is laid off from his job at the paper plant and borrows from his savings for 8 months until he finds a new job. Pietro's
a. transitory income likely exceeds his permanent income for that year. b. borrowing is representative of a normal economic life cycle. c. permanent income is largely unaffected by this one time change to his income. d. economic mobility during this year is highly unusual, as US workers tend to stay in a particular income class.
Exhibit 4-3 Supply and demand curves
In Exhibit 4-3, an increase in demand would cause a movement from which equilibrium point to another, other things being equal?
A. E1 to E2. B. E1 to E3. C. E4 to E1. D. E1 to E4.