Suppose a Firm Has a Monopoly on the Sale of Widgets

question 346

Multiple Choice

Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100th widget, the firm will always receive

• A) less marginal revenue on the 100th widget than it received on the 99th widget.
• B) more average revenue on the 100th widget than it received on the 99th widget.
• C) more total revenue on the 100 widgets than it received on the first 99 widgets.
• D) a lower average cost per unit at 100 units of output than at 99 units of output.

---

Definitions:

Price of X

Refers to the cost or value of an item, product, or variable denoted as "X."

Price of Y

Refers to the cost associated with purchasing a specific quantity of good Y.

Bundle

A combination of goods or services that are consumed together.

Price of X

The amount of money required to purchase a specific product or service, denoted as 'X'.