A. the price is greater than the marginal revenue
B. the price is less than the marginal revenue
C. there is no relation
D. they are equal
Related Mcqs:
- The marginal revenue curve in monopoly ?
A. Equals the demand curve
B. Is parallel with the demand curve
C. Lies below and converges with the demand curve
D. Lies below and diverges from the demand curve - In a monopoly, marginal revenue is ?
A. lower than price for all units other than the first
B. less than price at low levels of output and greater than price at high levels of output
C. always greater than price
D. always equal to price - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped. - If a marginal revenue exceeds marginal cost, a monopolists should?
A. increase should
B. decrease output
C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
D. raise the price - Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?
A. Cause the monopolist to exit the market
B. improve efficieny
C. raise the price of good
D. attract additional firms to enter the market - If both marginal cost and marginal revenue increase, a firm ?
A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output - An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?
A. reduces; reduces
B. reduces; increases
C. increases; increases
D. increases; reduces - When marginal revenue equals marginal cost ?
A. Total revenue equals total cost
B. There is the biggest positive difference between total revenue and total cost
C. There is the biggest negative difference between total revenue and total cost
D. Profits are Zero - If marginal revenue equals marginal cost ?
A. No profit is being made
B. Total revenue equals total cost
C. Profits are maximised
D. Producing another unit would increase profits - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production
