A. the revenue gain from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price. B. the revenue gain from the last unit sold is offset by further gains in price on units not sold at all. C. total revenue always decreases as...
A monopolist's marginal revenue is less than the price of its product because: (1) its demand curve is the market demand curve, so (2) to increase the amount sold, the monopolist must lower the price of its good for every unit it sells. (3) This cut in prices reduces revenue on ...
Explain why price is greater than marginal revenue for a single-price monopolist and how this differs from perfect competition. What is the profit maximizing price and output for a monopoly? Explain. Explain how consumer surplus changes when a monopoly...
If the marginal revenue is equal to the marginal cost, doesn't that mean that the firm is making zero profit? Why is that referred to as the "profit maximizing point?" The monopolist is characterized as a price-taker. a) Why does a profi...
aA monopolist’s marginal revenue is always less than the price of its good (MR < P) 垄断者的边际收入比价格总是较少的它好(先生< P) [translate] aA monopolist’s marginal revenue curve always lies below its demand curve. 垄断者的边际收入曲线在它的需求曲线之下总说谎。 [translate] ...
Conversely, setting the price too low may result in a high quantity sold, but because of the low price, it will not bring in much revenue either. The challenge for the monopolist is to strike a profit-maximizing balance between the price it charges and the quantity that it sells....
Price elasticity |E_{P_x}^d|>1,demand iselastic (富有弹性),即商品自身价格变化1%时,商品的需求变化大于1% E_{P_x}^d= -1, demand is said to beunit elasticor unitary elastic |E_{P_x}^d|<1, demand isinelastic(缺乏弹性),即商品自身价格变化1%时,商品的需求变化小于1% ...
B) equal to average revenue. C) less than price. D) more than price. Answer: C Diff: 1 Section: 10.1 Figure 10.1.1 2) Refer to Figure 10.1.1 above. For the monopolist shown below, the profit maximizing level of output is: A) Q1. B) Q2 C) Q3 D) Q4. Answer: A Diff: 1 ...
(ii) Under monopolistic competition, a firm faces a perfectly elastic demand curve. (iii) A monopolist can sell any quantity he likes at a price? View Solution What is a price taker firm? View Solution What is a price taker firm? View Solution ...
A monopoly consists of a single seller who serves the entire market. Therefore, the monopolist faces a downward sloping market demand curve, and must lower the price in order to sell more units.Answer and Explanation: The marginal revenue curve for a monopolist is derived by differentiating the...