Which of the following is true of the marginal revenue for a monopolist?
a. As a monopoly increases production, marginal revenue decreases
b. As a monopoly increases production, marginal revenue increases.
c. As a monopoly increases production, marginal revenue remains constant.
d. As a monopoly increases production, marginal revenue first increases and then remains constant.
a
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If economic profits are zero, then the entrepreneur can go elsewhere and do better
Indicate whether the statement is true or false
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.25 per minute and the largest fixed fee that it can, what is Always There's total profit?
A. $30,625 B. $39,375 C. $40,000 D. $35,000