If a Profit-Maximizing Monopolist Faces a Downward-Sloping Market Demand Curve

question 41

Multiple Choice

If a profit-maximizing monopolist faces a downward-sloping market demand curve, its

• A)average revenue is less than the price of the product.
• B)average revenue is less than marginal revenue.
• C)marginal revenue is less than the price of the product.
• D)marginal revenue is greater than the price of the product.

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Definitions:

Approach Motivation

Anticipating rewards for success.

Prime

A condition of being in the best stage or highest quality, often used in relation to time or physical condition.

Avoidance Motivation

Worrying about the negative consequences of failure.

Safety And Security

Fundamental needs referring to the protection from harm and assurance of physiological and psychological wellbeing.