Which of the Following Statements Is Correct

question 64

Multiple Choice

Which of the following statements is correct?

• A)If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit.
• B)If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling fewer units at a higher price per unit.
• C)When a monopolist produces where price equals the minimum of average total cost, it earns a positive economic profit.
• D)If the monopolist is earning a positive economic profit, it must be producing where MR = MC.

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Definitions:

Court-Created Damages

Damages awarded by a court as a remedy in a lawsuit, often in cases where traditional damages are insufficient to resolve the harm done.

Donee Beneficiary

A third party who provides no consideration for the benefits received and who owes the contracting parties no legal duty.

Consideration

A crucial element in contract law that refers to something of value exchanged between parties, forming the basis for a contract's validity.

Contracting Parties

The entities or individuals that agree to, sign, and are bound by a contract.