If a Monopolist Wishes to Sell an Additional Unit of the Good

question 136

Multiple Choice

If a monopolist wishes to sell an additional unit of the good, then

• A)it must raise its price to signal consumers that its product is now a more important part of their budget, and they will purchase more.
• B)like a competitive firm, it can simply make more output available and not lower price.
• C)it must lower price.
• D)it can raise price and not worry that sales will decrease.
• E)a and d

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and any other debts.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements, making it easier to compare entities internationally.

Current Liability

An obligation that a company is required to pay off within the current fiscal year or operating cycle, essentially a rephrased definition of current liabilities.