A Monopoly Is Able to Increase the Markup of Price

question 11

Multiple Choice

A monopoly is able to increase the markup of price over marginal cost:

• A) when the demand is more price-elastic.
• B) when the demand is less price-elastic.
• C) when there is more marginal revenue per unit sold.
• D) at will regardless of price-elasticity.

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Definitions:

Conservation

The principle in cognitive development where a child learns that quantity doesn’t change despite the arrangement or appearance altering.

Social Mediation

Human interaction that expands and advances understanding, often through words that one person uses to explain something to another.

Zone of Proximal Development

A concept developed by Vygotsky, referring to the difference between what a learner can achieve independently and what they can achieve with guidance and encouragement from a skilled partner.

Bidirectional Function

A relationship or interaction that goes in two directions, often referring to the mutual influence two variables have on each other.