Because a monopolist must cut its price to increase its sales by one unit,
A. MR > P at every output level.
B. MC > MR at every output level.
C. P > MR at every output level.
D. MC > P at every output level.
Answer: C
You might also like to view...
If demand for farm crops is inelastic, a good harvest will cause farm revenues to:
A. Increase because of the increase in the quantity that farmers can sell B. Increase because of a downward movement along the supply curve, encouraging an increase in demand C. Decrease because of a percentage fall in price greater than the percentage increase in quantity sold D. Remain unchanged, because the increase in quantity that can be sold will be matched by an equal decrease in price
Which of the following is an example of a market solution to a queuing problem?
a. selling discounted televisions to the first shoppers to grab them b. paying premium prices for reserved seats to avoid lines at a sporting event c. selling concert tickets to the first 500 people in line d. paying a lower price to buy general admission tickets instead of first-class seats