The Figures Given Below Represent the Revenue Curves of a Monopolist.Figure

question 19

Multiple Choice

The figures given below represent the revenue curves of a monopolist.Figure 11.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-Refer to Figure 11.2. If the monopolist is selling a quantity between B and E,then to maximize total revenue, the monopolist should:

• A)increase price because it is operating on the elastic portion of the demand curve.
• B)decrease price because it is operating on the elastic portion of the demand curve.
• C)increase price because it is operating on the inelastic portion of the demand curve.
• D)decrease price because it is operating on the inelastic portion of the demand curve.
• E)increase price because it is operating at the point at which price elasticity of demand is greater than 1.

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Definitions:

Attribution

A belief concerning why people behave in a certain way.

Fixation

In psychoanalytic theory, a persistent focus of the id's pleasure-seeking energies at an earlier stage of psychosexual development, leading to psychic conflict and developmental issues.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood, typically ranging from the late teens through the twenties.

Optimistic Belief

The tendency to hold a positive outlook towards the future or the expectation of good outcomes.