When a Monopolist Increases the Number of Units It Sells

question 350

Multiple Choice

When a monopolist increases the number of units it sells, there are two effects on revenue. They are the

• A)demand effect and the supply effect.
• B)competition effect and the cost effect.
• C)competitive effect and the monopoly effect.
• D)output effect and the price effect.

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Definitions:

Owner's Equity

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth of a company.

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.