Because a Monopolist Must Lower Its Price in Order to Sell

question 378

Multiple Choice

Because a monopolist must lower its price in order to sell another unit of output,

• A)marginal revenue is less than price.
• B)long-term economic profits will be zero.
• C)total revenue increases as price increases.
• D)average revenue is less than price.

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Definitions:

Insurance Policy

An insurance policy is a contract between an insurer and the insured, detailing the terms under which the insurer agrees to compensate for specific financial losses or damages.

Utmost Good Faith

A legal doctrine requiring parties to act with honesty and not mislead or withhold information from each other.

Co-insurance Clause

A provision in insurance policies that divides the risk of loss between the insurer and the insured, based on a fixed percentage of the value of the insured item.

Insured

A person or entity covered under an insurance policy, receiving financial protection or reimbursement against losses.