Suppose You Observe That as Output in the Market Increases

question 114

Multiple Choice

Suppose you observe that as output in the market increases, total revenue for the market declines. This would imply that

• A)a monopoly would be unable to exercise market power in this market.
• B)the demand for this product is not completely inelastic.
• C)the market is not a monopoly.
• D)any type of firm in this market would be a price-taker.
• E)firms in this market have strong market power.

---

Definitions:

Financial-Planning Consultant

A professional who advises clients on managing their finances and achieving financial goals.

Vicarious Liability

A legal principle where one party is held liable for the actions or omissions of another, typically in an employer-employee relationship.

Defamation

The act of damaging someone's reputation through false statements, either spoken (slander) or written (libel).

Duty to Be Careful

An obligation to act with a reasonable level of care and caution to avoid harm to others or their property.