Suppose a Firm Has a Monopoly on the Sale of Widgets

question 478

Multiple Choice

Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100^th widget, the firm will always receive

• A)less marginal revenue on the 100^th widget than it received on the 99^th widget.
• B)more average revenue on the 100^th widget than it received on the 99^th widget.
• C)more total revenue on the 100 widgets than it received on the first 99 widgets.
• D)a lower average cost per unit at 100 units of output than at 99 units of output.

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Definitions:

MPTP

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Epinephrine

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Stimulant Drugs

Substances that increase alertness, attention, and energy by elevating the levels of key neurotransmitters in the brain.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its addictive properties and potential for abuse.