If the Demand for Its Good or Service Is Inelastic,a

question 62

Multiple Choice

If the demand for its good or service is inelastic,a monopoly's

• A)total revenue increases when the firm lowers its price.
• B)total revenue is unchanged when the firm lowers its price.
• C)marginal revenue is negative.
• D)marginal revenue is equal to zero.
• E)marginal revenue is positive.

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Definitions:

Marshall Plan

U.S. program for the reconstruction of post–World War Ⅱ Europe through massive aid to former enemy nations as well as allies; proposed by General George C. Marshall in 1947.

Economic Recovery

Refers to the process of a country or region's economy returning to a state of growth and stability after a period of decline or recession.

Anticommunist Regime

A government or political system actively opposed to communism, often implementing policies to restrict or eliminate communist influence within its jurisdiction.

Truman Doctrine

A U.S. foreign policy established in 1947 by President Harry S. Truman to contain the spread of communism, beginning with aid to Greece and Turkey.