As a Monopolist Increases the Quantity of Output Produced, What

question 242

Multiple Choice

As a monopolist increases the quantity of output produced, what happens to price (P) and marginal revenue (MR) ?

• A)both P and MR remain constant
• B)P is constant, but MR decreases
• C)P decreases, but MR is constant
• D)both P and MR decrease, but P falls faster than MR
• E)both P and MR decrease, but MR falls faster than P

---

Definitions:

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, aimed at regulating labor unions' internal affairs and their officials' dealings with employers.

Labor Legislation

Laws enacted to regulate the relationship between workers and employers, aiming to protect worker rights and promote fair labor practices.

Rationale

The underlying logic or reasoning behind a decision, argument, or theory, often explaining why a particular course of action was taken.