A Profit-Maximizing Monopoly with a Straight-Line Demand Will Never Produce

question 52

Multiple Choice

A profit-maximizing monopoly with a straight-line demand will never produce when demand is inelastic because

• A)price would be negative.
• B)consumers would buy nothing.
• C)revenue would be rising as cost falls.
• D)marginal revenue would be negative and could not equal marginal cost.
• E)there would be too few potential customers.

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Definitions:

Fertilization

Process that begins with the penetration of the secondary oocyte by the spermatozoon and is completed with the fusion of the male and female pronuclei.

Implantation

The process by which a fertilized egg attaches to the lining of the uterus, beginning the stages of pregnancy.

Chorionic Villi

Finger-like projections from the chorion that extend into the uterine wall, facilitating nutrient exchange between mother and fetus.

Syncytiotrophoblast

Outer layer of the trophoblast composed of multinucleated cells.