Which of the Following Can Be Concluded About a Monopolist

question 114

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 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:

Consumer Goods

Products and commodities that are bought and used by individuals and households for personal use.

Agricultural Production

The process of cultivating plants and raising livestock for food, fiber, and other products.

Social Contract

Agreement hammered out between labor and management in leading industries; called a new “social contract.” Unions signed long-term agreements that left decisions regarding capital investment, plant location, and output in management’s hands, and they agreed to try to prevent unauthorized “wildcat” strikes.

Childcare Expenses

Costs that parents or guardians incur in providing care for their children, especially during work hours, including daycare, nannies, and preschool services.