Which of the following statements is true?
a. When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price.
b. When a monopolistic firm decides to increase price, its profit will increase.
c. When a competitive firm sells an additional unit of output, its revenue increases by an amount less than the price.
d. Average revenue is the same as price for both competitive and monopoly firms.
Answer:
a. When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price.
d. Average revenue is the same as price for both competitive and monopoly firms.
You might also like to view...
A change in the price level ________ the AE curve and ________ the AD curve
A) results in a movement along; shifts B) shifts; results in a movement along C) shifts; shifts D) has no effect on; results in a movement along E) results in a movement along; results in a movement along
If the wage rate paid in the fast-food outlets in a small town is greater than the reservation wage of all the teenagers in the town and less than the reservation wage of all the adults, then the fast-food outlets will hire ________
A) mostly adults and a few teenagers B) some adults and some teenagers C) only adults D) only teenagers