If a Monopolist Wishes to Increase Its Output and Quantity

question 160

Multiple Choice

If a monopolist wishes to increase its output and quantity sold

• A) it must reduce its price, so its marginal revenue is greater than its price.
• B) it must reduce its price, so its marginal revenue is less than its price.
• C) it must raise its price, so its marginal revenue is greater than its price.
• D) it must raise its price, so its marginal revenue is less than its price.

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Definitions:

Tarlike Substance

A viscous, dark-colored material similar to tar, often used for waterproofing, roofing, or as a raw material in various industrial processes.

Mammoth Ivory

Ivory derived from the tusks of mammoths, used historically for art, tools, and decoration during prehistoric times.

Pebbles

Small, smooth, rounded stones that are often found on beaches and at the bottoms of rivers.

Ground Line

In paintings and reliefs, a painted or carved baseline on which figures appear to stand.