If the price elasticity of demand is greater than 1, a monopoly's
A) total revenue increases when the firm lowers its price.
B) total revenue decreases when the firm lowers its price.
C) marginal revenue is negative.
D) marginal revenue is zero.
A
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In retaliation for U.S. support for Israel during the Arab-Israeli War, OPEC countries stopped selling oil to the United States. For the United States, this embargo caused the
A. demand curve for oil to shift out. B. demand curve for oil to shift in. C. supply curve of oil to shift out. D. supply curve of oil to shift in.
In economics, a public good
A. Is provided in an optimal amount by the market. B. Is any good produced by the government. C. Cannot be denied to consumers who have not paid. D. Has social costs of production lower than private costs of production.