Author Question: If the price elasticity of demand is less than 1, a monopoly's A) total revenue increases when ... (Read 80 times)

khang · **on:** Jun 29, 2018

If the price elasticity of demand is less than 1, a monopoly's

A) total revenue increases when the firm lowers its price.
B) total revenue decreases when the firm lowers its price.
C) marginal revenue is undefined.
D) marginal revenue is zero.

Question 2

A perfectly competitive firm's short-run shutdown point is the level of output at which

A) price equals average total cost.
B) price equals average fixed cost.
C) price equals the minimum average variable cost.
D) price is above the minimum average total cost but below the minimum average fixed cost.