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:

Lab Fee

A charge specifically related to the use of laboratory equipment or participation in laboratory-based classes.

Treasury Bonds

Long-term, fixed-interest securities issued by the U.S. government as a way of borrowing money to fund its operations and projects.

Issue Price

The price at which new shares or bonds are offered to the public by a company or government for the first time.

Yield Per Annum

The annual return on an investment, expressed as a percentage of the total investment.