In the inelastic portion of a monopolist's demand curve, an increase in price will:
A. Reduce output quantity, increase total revenue, and increase total cost
B. Reduce output quantity, increase total revenue, and decrease total cost
C. Raise output quantity, decrease total revenue, and increase total cost
D. Reduce output quantity, decrease total revenue, and decrease total cost
B. Reduce output quantity, increase total revenue, and decrease total cost
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The ________ is the price of one good ________ the price of another good
A) relative price; times B) relative price; divided by C) budget; times D) budget; divided by
If the relative price of pizza in terms of movies is 3, this means that
A) the opportunity cost of a pizza is 3 movies. B) 3 pizzas can be traded for 9 movies. C) in terms of the dollars that must be spent to buy the product, pizza is more expensive than movies. D) All of the above answers are correct.