Which of the Following Best Explains Why Marginal Revenue for a Monopolist

question 187

Multiple Choice

Which of the following best explains why marginal revenue for a monopolist is less than the sales price?

• A) To sell more units, the monopolist must reduce price on all units sold.
• B) As the monopolist expands output, the average total cost of production declines.
• C) The monopolist charges each consumer the highest possible price.
• D) When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.

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Definitions:

Disaffirmance

The legal cancellation or voiding of a contract or agreement, often due to one party's lack of capacity or discovery of a significant mistake.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement.

Restitution

An act of restoring or paying compensation for loss or damage to the original state or owner.

Tort Of Defamation

The tort of defamation involves making false statements about another person that cause harm to their reputation.