Option b. Reduce its price. The monopolist can raise the revenue by reducing the price because it will increase the selling. But, the monopolist can't produces more output because the marginal revenue from additional unit of production will be less than the earlier charge for additional unit as there is downward sloping demand curve.
Question 1 Since a monopolist faces a downward sloping demand curve, the only way it can...
14) If a firm faces a downward-sloping demand curve a. it will always make a profit. b. it can control both price and quantity sold. c. it must reduce its price to sell more output. d. the demand for its product must be inelastic.
A monopolist has market power because it O Is a price taker. Faces a downward-sloping demand curve for its own output. O Can raise price as much as it wishes and not lose any customers. 0 Is regulated by the government. none of the Answers are correct.
QUESTION 22 Why is the marginal revenue curve of a monopolist downward sloping? Because marginal revenue curves are downward sloping regardless of market structure. Because the monopolist can choose how many units to sell. Because the price of existing units falls when the monopolist chooses to sell more units. Because the price of existing units rises when the monopolist chooses to sell more units. QUESTION 23 Marginal revenue for a monopolist will only be positive if: it equals the market...
If a profit-maximizing monopolist faces a downward-sloping market demand curve, what do we know?What can the marginal product of labour be defined as?
Consider a monopolist facing a straight line downward sloping demand curve. Suppose that the monopolist has constant marginal cost c>0 and wishes to maximise profit. At the optimal price and quantity choice, if the monopolist were to reduce its price marginally, the total revenue Select one: O a decreases. b. increases. O c. does not change. O d. Not enough information to determine.
57. A profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -3. The firm finds it optimal to charge a price of $12 for its output. What is its marginal cost at this level of output?
Suppose a firm has market power and faces a downward-sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then A. producer surplus increases due to new buyers, but the producer surplus from existing customers declines due to the lower price. B. the sum of producer and consumer surplus remains the same, but surplus value is transferred from the producer to consumers. C. the change in producer surplus is transferred...
Amonopolist faces a downward sloping demand curve that is equal to which of the following? o The prevailing market price. O The market demand curve. Its marginal cost curve. • Marginal revenue.
1. A firm faces a downward-sloping linear demand (a) What is the firm's marginal revenue if the firm is i. a perfectly competitive firm? ii. a monopolist that can set a uniform price? ii. a monopolist that can perfectly price discriminate? (b) For each of the above cases, state whether the marginal revenue increases, decreases, or is constant in the quantity that the firm produces
QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a horizontal supply function. perfectly elastic demand. QUESTION 10 The short-run industry supply curve slopes up because the law of diminishing marginal product applies in the short run. wages increase as the industry increases output. the firms eventually experience diseconomies of scale. the higher price is needed to get more firms to enter the industry.