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.

---

Definitions:

Tarsal

Relating to the bones in the foot located between the ankle and metatarsal bones, contributing to the foot's structure and movement.

Phalanges

The bones in the fingers and toes of humans and other vertebrates.

Achondroplasia

A genetic disorder affecting bone growth, leading to dwarfism characterized by short limbs, a normal-sized torso, and an enlarged head.

Epiphyses

The rounded end parts of a long bone, which grow separately from the shaft during development and later fuse to it.