Because a Monopoly's Demand Curve Is the Same as the Market

question 218

Multiple Choice

Because a monopoly's demand curve is the same as the market demand curve for its product,

• A)the monopoly's marginal revenue equals its price.
• B)the monopoly is a price taker.
• C)the monopoly must lower its price to sell more of its product.
• D)the monopoly's average total cost always falls as it increases its output.

---

Definitions:

Operating Period

The length of time during which a business or a project is expected to operate or carry out its primary operations.

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in zero net profit or loss.

Business Division

A distinct part of a large company that operates under the firm's umbrella but focuses on a particular area of business or market segment.

Break-even Sales

The amount of revenue required to cover both the fixed and variable costs of production, resulting in no net profit or loss.