Suppose a Firm Has a Monopoly on the Sale of Widgets

question 191

Multiple Choice

Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve.When selling the 100ᵗʰ widget,the firm will always receive

• A)less marginal revenue on the 100ᵗʰ widget than it received on the 99ᵗʰ widget.
• B)more average revenue on the 100ᵗʰ widget than it received on the 99ᵗʰ widget.
• C)more total revenue on the 100 widgets than it received on the first 99 widgets.
• D)a lower average cost per unit at 100 units output than at 99 units of output.

---

Definitions:

Quality

The degree to which a project's deliverables meet the requirements and satisfy the needs for which they were intended, often assessed through quality control and assurance processes.

Normal Distributions

A type of statistical distribution where data is symmetrically distributed around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A statistical measure representing the dispersion or variability of a set of data points, indicating how much the individual data points deviate from the mean.

Measurements

Measurements are the process of obtaining quantitative data or observations of variables, typically using standardized instruments or methods, to assess, compare, or track performance or phenomena.