Question

For a monopoly firm, which of the following equalities is always true?

A Price = average revenue Correct Answer Incorrect Answer
B Price = marginal revenue Correct Answer Incorrect Answer
C Price = total revenue Correct Answer Incorrect Answer
D Marginal revenue = marginal cost Correct Answer Incorrect Answer
E Price = Average Cost Correct Answer Incorrect Answer

Solution

Total Revenue = P*Q Average Revenue = TR/Q = P*Q /P = Price.

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