Suppose a firm has a monopoly on the sale of widgets and faces adownward-sloping
ID: 1252356 • Letter: S
Question
Suppose a firm has a monopoly on the sale of widgets and faces adownward-sloping demand curve. When selling the 100thwidget, the firm will always receive
less marginal revenue on the 100th widget than itreceived on the 99th widget.
more average revenue on the 100th widget than itreceived on the 99th widget.
more total revenue on the 100 widgets than it received on the first99 widgets.
a lower average cost per unit at 100 units output than at 99 unitsof output.
less marginal revenue on the 100th widget than itreceived on the 99th widget.
more average revenue on the 100th widget than itreceived on the 99th widget.
more total revenue on the 100 widgets than it received on the first99 widgets.
a lower average cost per unit at 100 units output than at 99 unitsof output.
Explanation / Answer
A. less MR on the one-hundredth widget. Cannot be C or D.
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