Which of the Following Is True of the Marginal Revenue

question 192

Multiple Choice

Which of the following is true of the marginal revenue earned by a non-price discriminating monopolist that charges a single price?

• A)The marginal revenue earned by a monopoly is equal to the average cost it incurs.
• B)The marginal revenue earned by a monopoly is more than the price of its product.
• C)The marginal revenue earned by a monopoly is less than the price of its product.
• D)The marginal revenue earned by a monopoly is equal to the average revenue it earns.
• E)The marginal revenue earned by a monopoly is equal to the price of its product.

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Definitions:

Nominal Exchange Rate

How quickly one currency is swapped for another, without considering inflation adjustments.

Big Mac

A hamburger sold by McDonald's that is often used as an informal measure of purchasing power parity between currencies.

Depreciates

The decrease in value of an asset over time or in response to changes in market conditions.

Euro

The Euro is the official currency of the Eurozone, which consists of 19 of the 27 European Union member states, serving as one of the world's major currencies.