When a Monopoly Increases Output by One Unit

question 40

Multiple Choice

When a monopoly increases output by one unit,

• A)the change in revenue equals market price.
• B)market price does not change.
• C)only that unit must be sold for less than other units.
• D)revenue for the firm decreases.
• E)less must be charged for all units of output.

---

Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, opposite of economies of scale where costs decrease with increasing production.

Economic Growth

A rise in the output of goods and services within an economy over a specific time frame.

Employment Discrimination

The unfair or prejudicial treatment of individuals in the workplace based on race, gender, age, religion, nationality, or other non-merit factors.

Innovation

The act of converting a concept or innovation into a product or service that generates value or is something customers are willing to purchase.