Which of the Following Is NOT Correct About a Single-Price

question 53

Multiple Choice

Which of the following is NOT correct about a single-price monopoly?

• A) Marginal revenue is negative when demand is inelastic.
• B) To maximise its profit, the firm produces so that marginal revenue equals marginal cost.
• C) Maximum profit is found where demand is the most inelastic.
• D) Marginal revenue is positive when demand is elastic.
• E) To sell more output, the firm must lower its price.

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Definitions:

Joseph Galloway

A loyalist politician, lawyer, and writer in the American Colonies, who served as a delegate to the First Continental Congress but later maintained his loyalty to the British crown during the American Revolution.

John Adams

The second President of the United States, known for his role in the American Revolution and as a Founding Father.

George Washington

The first President of the United States, serving from 1789 to 1797, and a key leader during the American Revolutionary War.

Continental Army

The army raised by the Second Continental Congress in 1775 to fight the British during the American Revolutionary War, commanded by General George Washington.