If a Monopolist Faces a Straight-Line Downward Sloping Demand Curve

question 46

Multiple Choice

If a monopolist faces a straight-line downward sloping demand curve, the price of the units it sells is always:

• A) greater than the average revenue.
• B) equal to marginal revenue.
• C) greater than marginal revenue.
• D) less than the average revenue.

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Definitions:

Production Step

A production step involves any stage in the process of creating a product, from initial concept to final output.

OPEC Member

A country that is part of the Organization of the Petroleum Exporting Countries, a group that coordinates and unifies petroleum policies among member countries.

Saudi Arabia

A country in the Middle East known for its vast oil reserves, which play a significant role in the global energy market and its economy.

Norway

A Northern European country known for its high standard of living, extensive natural resources, and robust welfare system.