For a Single- Price Monopolist, Marginal Revenue Is Less Than

question 129

Multiple Choice

For a single- price monopolist, marginal revenue is less than price because

• A) total revenue always decreases as output increases.
• B) the revenue gain from the last unit sold is offset by further gains in price on units not sold at all.
• C) the revenue gain from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price.
• D) the price does not have to be lowered on all previous units sold.

Differentiate the elasticity of supply in the short run and long run across different resources.

Assess the role of unions and certification requirements on labor supply and wages.

Predict the implications of external market changes on resource demand and supply.

Explain how changes in resource prices influence market equilibrium and business strategies.