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

question 330

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

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Definitions:

Failure To File Penalty

A penalty imposed by tax authorities for not filing a required tax return by the due date.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.

Remaining Tax

The portion of tax liability that remains unpaid after all payments and credits have been applied, effectively the balance due.

Multiple Support Agreement

An agreement that allows multiple taxpayers who support a dependent together to decide who among them gets to claim the tax benefits for that dependent.