For a competitive firm, the supply curve is that part of the average variable cost curve that is above the short-run marginal cost curve.

For a single-price monopolist, why is marginal revenue less than price?

A) Because the firm is a price taker. B) To sell another unit, the price must be lowered. C) Demand is elastic when another unit is sold. D) Demand is inelastic when another unit is sold. E) The question is false because marginal revenue is always equal to price.

An increase in consumer income will shift both the supply and demand curves

a. True b. False Indicate whether the statement is true or false