Author Question: Which of the following best explains why the monopolist's marginal revenue is less than the selling ... (Read 91 times)

a0266361136 · **on:** Jun 30, 2018

Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold.
b. As the monopolist expands output, the average total cost will decline.
c. The monopolist charges each consumer the highest possible price.
d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.

Question 2

The law of diminishing marginal utility is the principle that the marginal utility curve ____ as people consume more of a product in a given period.
a. rises.
b. falls.
c. remains unchanged.
d. first falls and then rises.