Which of the Following Statements Is TRUE

question 135

Multiple Choice

Which of the following statements is TRUE?

• A) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
• B) If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
• C) When a monopolist produces where MR = MC it always earns a positive economic profit
• D) A monopolist is guaranteed monopoly profits.

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Definitions:

Reciprocal Services Method

An approach used in cost accounting to allocate costs between departments that provide services to each other.

Support Department Costs

Expenses related to departments that do not directly generate revenue but provide essential services to revenue-generating departments.

Total Cafeteria Costs

The aggregate expenses associated with operating a cafeteria within a business, including food supplies, labor, and utilities.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace, influenced by supply and demand.