-The Figure Above Shows a Monopoly Firm's Demand Curve

question 98

Multiple Choice

-The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point r, the monopoly's

• A) total revenue will rise.
• B) marginal revenue will decrease.
• C) total revenue will remain the same.
• D) total revenue will fall.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, homogenous products, and no barriers to entry or exit.

Duopoly Market

A market structure dominated by only two producers or sellers, leading to a form of competition that significantly impacts pricing and output decisions.

Merging Firms

The process where two or more companies combine into a single company, often to expand market share, reduce costs, or increase competitiveness.

Identical Product

A product that is exactly the same in every feature, quality, and production process with another product, making them interchangeable.