Let P Be the Output Price for a Particular Good

question 59

Multiple Choice

Let P be the output price for a particular good. Why is the value P*MP_L greater than MRP_L for a monopolist?

• A) The monopolist is not as technically efficient as firms operating under perfect competition.
• B) The monopolist hires less labor, so MP_L is higher under a monopoly than under perfect competition.
• C) The monopolist sets a price that is higher than MR.
• D) A and C are correct.
• E) B and C are correct.

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Definitions:

Angelina Grimké

A 19th-century American abolitionist and women's rights advocate known for her writing and speeches attacking slavery and promoting human equality.

Sarah Grimké

An American abolitionist and advocate for women's rights who, along with her sister Angelina, played a pivotal role in the women's suffrage movement.

Separate Spheres

A 19th-century ideology that men and women have different roles in society, with men dominating the public sphere and women the private, domestic sphere.

Seneca Falls Convention

A pivotal gathering held in 1848 that marked the beginning of the women's suffrage movement in the United States.