If a Monopoly Is Maximizing Profits

question 23

Multiple Choice

If a monopoly is maximizing profits,

• A)price will always be greater than the elasticity of demand.
• B)price will always equal marginal cost.
• C)price will always be greater than marginal cost.
• D)price will always equal marginal revenue.

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Definitions:

Pay Range

The spectrum of compensation offered for different positions within a company, indicating the minimum and maximum pay for each role.

Market-pay Surveys

Studies or analyses performed to gather data on prevailing wage rates for different jobs in the market.

Pay Differential

The variation in pay rates not explained by merit or performance, often resulting from factors like location, working hours, or job hazards.

Green-circle Rate

A situation in wage-setting where an employee's pay is below the minimum of the range set for their job class, often due to an anomaly or an exception in the salary structure.