For a Monopoly Firm, Which of the Following Equalities Is

question 235

Multiple Choice

For a monopoly firm, which of the following equalities is always true?

• A)price = marginal revenue
• B)price = average revenue
• C)price = total revenue
• D)marginal revenue = marginal cost

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Definitions:

Producer Surplus

The distinction in financial terms between what producers expect to receive for a product or service and the actual revenue attained.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual market price they receive, reflecting the benefit to producers from selling at a higher price.

Tax

A fundamental fiscal obligation or alternative sort of levy placed upon a taxpayer by a government power, promoting government funding and assorted investments in public infrastructure.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they do pay, reflecting the economic benefit obtained by consumers.