Suppose a Firm Has a Monopoly on the Sale of a Computer

question 302

Multiple Choice

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve. When selling the 50^th game, the firm will always receive

• A) less marginal revenue on the 50th game than it received on the 49th game.
• B) more average revenue on the 50th game than it received on the 49th game.
• C) more total revenue on the 50 games than it received on the first 49 games.
• D) Both b and c are correct.

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