Because a Monopolist Must Lower Its Price in Order to Sell

question 378

Multiple Choice

Because a monopolist must lower its price in order to sell another unit of output,

• A)marginal revenue is less than price.
• B)long-term economic profits will be zero.
• C)total revenue increases as price increases.
• D)average revenue is less than price.

---

Definitions:

Income Taxes

Income taxes are taxes levied by governments on the income of individuals or corporations as a fundamental revenue source for funding government expenditures.

Comprehensive Health Care Plan

A health care system that aims to provide universal access to a wide range of medical services for all citizens, typically funded by the government through taxation.

Bill Gates

Co-founder of Microsoft Corporation, one of the world's largest technology companies, and a philanthropist known for his work through the Bill & Melinda Gates Foundation.

American Population

The total number of persons inhabiting the United States, considered in terms of size, density, and demographic composition.