Asked by marbi mendoza on Jun 09, 2024
Verified
The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures:
A) the quantity demanded.
B) product price and marginal revenue.
C) total revenue.
D) product price and average revenue.
Nondiscriminating Monopolist
A monopolist that charges all consumers the same price for its product, regardless of the quantity purchased or consumer identity.
Demand Curve
A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.
Quantity Demanded
The amount of a good or service that consumers are willing and able to purchase at a specific price.
- Comprehend the traits and outcomes of absolute monopoly within economic frameworks.
- Fathom the connection between market demand, incremental revenue, and approaches to pricing within a monopoly context.
Verified Answer
RM
Rebecca MartinJun 13, 2024
Final Answer :
D
Explanation :
The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures product price and average revenue. This is because the demand curve shows the amount of a good or service that buyers are willing and able to purchase at various prices, and the price at any given quantity is the product price. The average revenue is the total revenue divided by the quantity sold, and the vertical distance on the demand curve represents the price for a given quantity, which is the product price, and the slope of the demand curve represents the change in total revenue resulting from a one-unit change in quantity sold, which is the marginal revenue.
Learning Objectives
- Comprehend the traits and outcomes of absolute monopoly within economic frameworks.
- Fathom the connection between market demand, incremental revenue, and approaches to pricing within a monopoly context.