Which of the Following Is Always True for a Single-Price

question 166

Multiple Choice

Which of the following is always true for a single-price monopolist?

• A) P > MR
• B) P < MR
• C) P = MR
• D) P = elasticity of demand
• E) None of the above answers is correct because none of them is always true.

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Definitions:

Average

A statistical measure central to a data set or distribution, typically the sum of all values divided by the number of values.

Variable Cost

Costs that change in proportion to the level of activity or production volume.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the wages that employers pay their staff.

Fixed Costs

Fixed costs in a business that do not change with the amount of goods produced or sold.