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:

Scarce Resources

Resources that are limited in availability and cannot sufficiently meet all the wants and needs of a society.

Markets

Platforms or systems where buyers and sellers interact to trade goods, services, or financial instruments.

Government Involvement

The participation or intervention by government bodies in the economy or specific industries.

Economic Activity

encompasses all actions involved in the production, distribution, and consumption of goods and services within an economy.