Question
Which of the following will be true for both monopoly and monopolistic competition in the short run ?
The correct answer is
Price is greater than marginal revenue.
Both firms face downward-sloping demand for their own output. Selling an additional unit requires a lower price, reducing revenue on existing units as well. Consequently, price exceeds marginal revenue.
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Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
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