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Ch13_Practice_Problems

B more average revenue on the 100th widget than it

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Unformatted text preview: Refer to Figure 15- 1. Considering the relationship between average total cost and marginal cost, the marginal cost curve for this firm must a. lie entirely above the average total cost curve. b. lie entirely below the average total cost curve. c. be U- shaped. d. be horizontal. 9. Suppose a firm has a monopoly on the sale of widgets and faces a downward- sloping demand curve. When selling the 100th widget, the firm will always receive a. less marginal revenue on the 100th widget than it received on the 99th widget. b. more average revenue on the 100th widget than it received on the 99th widget. c. more total revenue on the 100 widgets than it received on the first 99 widgets. d. a lower average cost per unit at 100 units output than at 99 units of output. 10. If a monopoly lowers its price, its a. total revenue must increase. b. total revenue must decrease. c. marginal revenue must increase. d. marginal revenue must d...
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