demand curve f monopolist lies above the marginal revenue curve a) Its demand curve is perfectly inelastic. It must lower price to sell more output, and the lower price ap b) units of output sold. c) Its demand curve is perfectly elastic. ) Its marginal revenue

demand curve f monopolist lies above the marginal revenue curve a) Its demand curve is perfectly inelastic. It must lower price to sell more output, and the lower price ap b) units of output sold. c) Its demand curve is perfectly elastic. ) Its marginal revenue

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 13CQ

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Question

Which of the following statements explains why the demand curve faces a pure
monopolist lies above the marginal revenue curve
O a) Its demand curve is perfectly inelastic.
It must lower price to sell more output, and the lower price applies to all
O b)
units of output sold.
Oc) Its demand curve is perfectly elastic.
d) Its marginal revenue curve slopes upward.

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