Question : 32) In case of a decrease in product prices: A) the : 1377492

32) In case of a decrease in product prices:

A) the quantity effect always dominates the price effect.

B) the price effect always dominates the quantity effect.

C) when the price effect dominates the quantity effect, total revenue increases.

D) when the quantity effect dominates the price effect, total revenue increases.

33) In case of a decrease in product prices:

A) the quantity effect always dominates the price effect.

B) the price effect always dominates the quantity effect.

C) when the quantity effect dominates the price effect, total revenue decreases.

D) when the price effect dominates the quantity effect, total revenue decreases.

34) In case of an increase in product prices:

A) the quantity effect always dominates the price effect.

B) the price effect always dominates the quantity effect.

C) when the quantity effect dominates the price effect, total revenue is rising.

D) when the quantity effect dominates the price effect, total revenue is falling.

35) In case of an increase in product prices:

A) the price effect is always zero.

B) the quantity effect is always zero.

C) when the price effect dominates the quantity effect, total revenue is rising.

D) when the price effect dominates the quantity effect, total revenue is falling.

36) Which of the following statements is true of the demand curve and the marginal revenue curve of a monopolist?

A) Both curves have the same intercept on the price axis.

B) The demand curve is downward sloping while the marginal revenue curve is upward sloping.

C) The intercept of the demand curve on the price axis is higher than the intercept of the marginal revenue curve.

D) The intercept of the demand curve on the price axis is lower than the intercept of the marginal revenue curve.

37) Which of the following statements is true of the demand curve and the marginal revenue curve of a monopolist?

A) Both curves overlap at all levels of output.

B) Both curves have the same intercept on the quantity axis.

C) The demand curve has a higher intercept on the quantity axis than the marginal revenue curve.

D) Both curves have different intercepts on both the quantity axis and the price axis.

38) When a monopolist sells positive levels of output:

A) its demand curve lies below its marginal revenue curve.

B) its demand curve lies above its marginal revenue curve.

C) its demand curve and marginal revenue curve overlap.

D) its demand curve is vertical while its marginal revenue curve is horizontal.

39) As a monopolist expands its output:

A) the difference between the demand curve and the marginal revenue curve decreases.

B) the difference between the demand curve and the marginal revenue curve increases.

C) the slope of the demand curve decreases, while the slope of the marginal revenue curve increases.

D) the slope of the demand curve increases, while the slope of the marginal revenue curve decreases.

40) If a monopolist faces a linear demand curve, its marginal revenue curve will be:

A) horizontal.

B) vertical.

C) twice as steep as the demand curve.

D) four times as steep as the demand curve.

41) The total revenue curve of a monopolist:

A) is positively sloped when marginal revenue is negative.

B) is negatively sloped when marginal revenue is negative.

C) is positively sloped when the marginal revenue curve is upward sloping.

D) is negatively sloped when the marginal revenue curve is downward sloping.

42) The total revenue curve of a monopolist is at its maximum point when:

A) marginal cost is zero.

B) marginal cost is positive.

C) marginal revenue is zero.

D) marginal revenue is positive.