If a Monopolist Charges the Same Price for All of the Units

question 105

Multiple Choice

If a monopolist charges the same price for all of the units of the good that it sells, then beyond the first unit sold

• A) P = MR because the firm maximizes profit.
• B) P = MR because the monopolist holds price constant.
• C) P < MR because the monopolist must decrease price on all units in order to sell another unit.
• D) P > MR because the monopolist must decrease price on all units in order to sell another unit.

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Definitions:

Phase

A term that denotes a specific stage in a cycle of a waveform, especially in the context of alternating current (AC) where it indicates the displacement between waveforms.

Parallel Circuit

A type of electrical circuit in which the components are connected alongside each other, forming branches such that each component has the same voltage.

Resistor Voltage

The voltage drop across a resistor, determined by the current flowing through it and its resistance, according to Ohm's Law.

Power Factor

A measure of how effectively electrical power is converted into useful work output, with a value ranging from 0 to 1, where 1 indicates maximum efficiency.