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.

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Definitions:

Grand Alliance

The coalition of nations, including the United Kingdom, Soviet Union, and United States, that allied to oppose the Axis powers during World War II.

Germany

A country in Central Europe known for its rich history, contributions to art, science, and philosophy, and its pivotal roles in both World War I and World War II.

Russia

The largest country in the world by area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and as a major global political power.

Movie Theaters

Places where films are shown publicly on a large screen for entertainment, ranging from large multiplexes to small independent cinemas.