For a monopoly, marginal revenue is less than price because
A) the firm is a price taker.
B) the firm must lower price if it wishes to sell more output.
C) the firm can sell all of its output at any price.
D) the demand for the firm's output is perfectly elastic.
B
You might also like to view...
The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________
A) raises; recession; lowers; expansion B) raises; expansion raises; recession C) lowers; expansion; lowers; recession D) lowers; recession; raises; expansion
In the classical model, a basic theoretical feature of self-regulating markets was that
a. unsold inventory and labor unemployment would cause prices and wages to increase. b. lower wages and prices would eliminate unemployment and unsold inventory. c. unsold inventory would never occur. d. an increase in planned saving would cause an increase in the interest rate and a decrease in investment.