Assume That at a Given Output a Monopolist's Marginal Revenue

question 138

Multiple Choice

Assume that at a given output a monopolist's marginal revenue is $25 and its marginal cost is $18.If the monopolist increases output,then

• A)price,marginal cost,and total profit will fall.
• B)price will fall,marginal cost will rise,and total profit will rise.
• C)price will rise,marginal cost will fall,and total profit will rise.
• D)price,marginal cost,and total profit will rise.

---

Definitions:

Private Enterprise System

A private enterprise system is an economic system where private individuals or businesses own and operate the means of production and distribution of goods and services.

Fair Competition

refers to a marketplace where businesses operate under rules that prevent monopolies and ensure equal opportunities for all participants.

Factor Payment

Financial compensation given to the factors of production—namely labor, capital, and resources.

Rent

A payment made by a tenant to a landlord for the use of a property or space.