For a Monopolist, When Does Marginal Revenue Equal Demand

question 183

Multiple Choice

For a monopolist, when does marginal revenue equal demand?

• A)when output is less than profit-maximising output
• B)when output is greater than profit-maximising output
• C)when there is a zero output
• D)marginal revenue is never equal to demand

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Definitions:

Increase In Liabilities

An upward adjustment in the obligations a company owes to external parties, which could be due to loans, accounts payable, or other financial commitments.

Reduction In Operating Assets

A decrease in the value or amount of assets used for generating revenue.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Average Operating Assets

The average value of the assets used in day-to-day operations over a certain period, important for determining return on investment and operational efficiency.