If the Demand for Its Good or Service Is Elastic,a

question 38

Multiple Choice

If the demand for its good or service is elastic,a monopoly's

• A)total revenue is unchanged when the firm lowers its price.
• B)total revenue decreases when the firm lowers its price.
• C)marginal revenue is positive.
• D)marginal revenue is zero.
• E)marginal revenue is negative.

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Definitions:

Net Income

The net income of a company, which is the amount left over from revenue after deducting all costs and taxes.

Service Revenues

Income earned from providing services as opposed to selling physical goods.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.

Common Shares

Shares in a company that signify ownership, allowing those who hold them to participate in voting and receive a part of the profits.