The Input Demand Curve for an Output Market Monopolist Slopes

question 85

Multiple Choice

The input demand curve for an output market monopolist slopes downward because:

• A)as the price of the input increases,a higher quantity of the input is employed.
• B)marginal product of the input increases as more input is employed.
• C)marginal revenue declines as more of the input is employed.
• D)price and marginal revenue are inversely related.

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Definitions:

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Positively Correlated

A relationship between two variables where if one variable increases, the other variable also increases.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Stock Market

A marketplace where stocks (shares of ownership in businesses) are bought and sold, often indicating the general health of an economy.