Which of the following best explains why a monopolist's marginal ...

[sheilaspns]

Which of the following best explains why a monopolist's marginal revenue is less than the sale price?
 a. To sell more units, a monopolist must increase the price on all units sold.
 b. As a monopolist expands output, its average total cost declines.
 c. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
  d. When a monopolist reduces price in order to sell more units, it must lower the price of some units that could otherwise have been sold at a higher price.

Question 2

Which of the following is consistent with increasing returns to scale?
 a. An upward sloping marginal cost curve
  b. A downward sloping marginal cost curve
  c. An upward sloping long-run average cost curve
  d. A downward sloping long-run average cost curve

[jaymee143]

Answer to Question 1

d

Answer to Question 2

D

[sheilaspns]

Excellent

[connor417]

Thanks for the timely response, appreciate it