For a Monopolist, Marginal Revenue Is

question 379

Multiple Choice

For a monopolist, marginal revenue is

• A)positive when the demand effect is greater than the supply effect.
• B)positive when the monopoly effect is greater than the competitive effect.
• C)negative when the price effect is greater than the output effect.
• D)negative when the output effect is greater than the price effect.

---

Definitions:

Weighted-Average Method

An inventory valuation technique that calculates the cost of inventory by taking the average cost of all similar items present in the inventory.

First-In, First-Out Method

An inventory valuation method whereby the oldest inventory items are recorded as sold first, thus the cost of items purchased first is charged against revenue earlier.

Equivalent Units

A concept used in cost accounting to convert units of production into a common measure.

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the newest inventory in stock.