Which of the Following Can Be Concluded About a Monopolist

question 143

Multiple Choice

Which of the following can be concluded about a monopolist whose marginal revenue is zero for a particular output level?

• A)The economic profit earned by the monopolist by producing that output level is zero.
• B)Total revenue earned by the monopolist is at its maximum at that output level.
• C)Total revenue earned by the monopolist increases at an increasing rate as output increases beyond that output level.
• D)Total revenue earned by the monopolist increases at a decreasing rate as output increases beyond that output level.
• E)Average revenue earned by the firm for that output level is less than marginal revenue for that output level.

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Definitions:

Transfer Payments

Cash or in-kind benefits given to individuals as outright grants from the government.

Double-Entry Bookkeeping

An accounting method that records each transaction in two accounts, ensuring that the total debits equals the total credits and maintaining the balance of the accounting equation.

Aggregate Output

The total quantity of goods and services produced in an economy in a given period.

Transfer Payment

A payment made by the government to individuals, without the government receiving any goods or services in return.