The Table Given Below Shows the Price, Marginal Revenue and Marginal

question 59

Multiple Choice

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Identify the correct statement.

• A)A monopolist's pricing decision is limited by the demand for its product.
• B)A monopolist is able to choose any price and quantity combination that it desires.
• C)A monopolist can increase its profits by increasing price if the demand for its good is relatively elastic.
• D)A monopolist does not suffer losses even in the short run.
• E)A monopolist is not able to reap positive profits in the long run.

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Definitions:

Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.

Large-Sample Z

A statistical test used to infer that the means of two populations are equal when the sample size is large and the population variance is known.

Major Defects

Significant problems or imperfections observed in products or process outputs that typically require correction or significantly affect usability.

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation, often framed as predictions to be tested by scientific experiments.