Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. We thus know that:
A. demand is inelastic at this price.
B. the firm is maximizing profits.
C. total revenue is increasing.
D. total revenue is at a maximum.
Answer: C
Economics
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About 540 million passengers took plane trips in the United States in 2012 . If the average price of time for air travelers is $25 per hour, the opportunity cost of an hour of delay in airports is _____ per year
a. $13.5 billion b. $14.5 billion c. $12 billion d. $25 billion
Economics
Country A is relatively land-abundant, and wheat is relatively land-intensive. Given the assumptions of the Heckscher-Ohlin model, the opening of trade by this country will cause the domestic price of wheat to
A. fall. B. remain unaffected. C. rise. D. rise at first, but then fall back to its original level.
Economics