For a Single-Price Monopoly

question 219

Multiple Choice

For a single-price monopoly,

• A) if marginal cost exceeds marginal revenue, profits will increase if output decreases.
• B) if marginal revenue exceeds marginal cost, profits will increase if output decreases.
• C) there are several different price and output combinations that maximize profit.
• D) marginal revenue will be greater than price if demand is elastic.
• E) marginal revenue will be greater than price if demand is inelastic.