A Monopoly Firm Expands Its Output and Lowers Its Price

question 61

Multiple Choice

A monopoly firm expands its output and lowers its price. The firm finds that its total revenue falls. Hence, the firm is producing in the

• A) elastic range of its demand curve.
• B) inelastic range of its demand curve.
• C) elastic range of its supply curve.
• D) inelastic range of its supply curve.

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Definitions:

Stramenopiles

A diverse group of eukaryotic organisms, including diatoms and brown algae, characterized by fine, hair-like structures on their flagella.

Biflagellate

Having two flagella, which are long, slender projections that provide locomotion to various cells and single-celled organisms.

Nanoplankton

Extremely minute (<10 μm in length) algae that are major producers in the ocean because of their great abundance; part of phytoplankton.

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments, known for their role in red tides and bioluminescence.