Which of the Following Statements Is True

question 194

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 must earn a positive economic profit.
• D)If the monopolist is earning a positive economic profit, it must be producing where MR = MC.

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Definitions:

Skills

Abilities and expertise developed through practice and education to perform tasks effectively.

Agency Policy

Official rules or guidelines that govern the operations and decision-making processes within an organization.

Substantial Effort

Significant physical or mental exertion put forth to achieve something, indicating a high level of commitment and dedication.