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26 Nov 2019

Which of the following is a characteristic of a pure monopolist's demand curve?

 

  1. Its elasticity coefficient is 1 at all levels of output.

  2. It is the same as the market demand curve.

  3. Price and marginal revenue are equal at all levels of output.

  4. Average revenue is less than price. 

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Nestor Rutherford
Nestor RutherfordLv2
26 Nov 2019
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Related textbook solutions

Introductory Statistics
OER Edition, 2013
Openstax
ISBN: 9781938168208

Related questions

A monopolist's profit-maximizing price and output correspond to the point on a graph

 

  1. where average total cost is minimized

  2. where total costs are the smallest relative to price

  3. where marginal revenue equals marginal cost and changing the price on the market demand curve for that output

  4. where price is as high as possible

A pure monopolist should never produce in the:

  1. Elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering the price.

  2. Inelastic segment of its demand curve because it can increase total revenue and reduce total cost by increasing the price.

  3. Inelastic segment of its demand curve because it can always increase total revenue by more than it increases total cost by reducing the price.

  4. Segment of its demand curve where the price elasticity coefficient is greater than one.

The mr = mc rule can be restated for a purely competitive seller as p = mc because:

  1. Each additional unit of output adds exactly its price to total revenue.

  2. The firm’s average revenue curve is downsloping.

  3. The market demand curve is down sloping.

  4. The firm’s marginal revenue and total revenue curves will coincide.

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