When considering marginal revenue for the monopolist, which of the following is FALSE?
A) To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price.
B) An essential point for the monopolist, marginal revenue is always less than price.
C) Marginal revenue is always less than price because price must be reduced on all units to sell more.
D) The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.
Answer: D
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An increase in population growth will lead to a ________ in the steady-state capital—labor ratio and a ________ in output per worker
A) fall; fall B) fall; rise C) rise; rise D) rise; fall
The "Robin Hood" tax policy, which taxes the rich to give to the poor, is best described by economists as:
a. a proportional tax policy. b. a regressive tax policy. c. a poll tax policy. d. a progressive tax policy. e. a capital tax policy.