The Marginal Revenue Product Curve for a Monopolist Would Be

question 54

Multiple Choice

The marginal revenue product curve for a monopolist would be ________ its marginal product curve because ________.

• A)steeper than; its MR decreases as output increases
• B)steeper than; its product's price increases as output increases
• C)flatter than; it must pay a higher wage to labour
• D)flatter than; its product's price decreases as output increases
• E)the same as; the MRP curve always has the same shape as the MP curve

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to market value.

Premium

An amount paid in excess of the nominal or face value, often in relation to insurance or bonds.

Tax Deductible

Expenses or payments that can be subtracted from gross income to reduce the amount of income subject to taxation.

Term Bonds

Bonds that have a fixed maturity date on which the principal amount is due to be paid back to investors in full.