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erica [24]
3 years ago
8

Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100th widget, t

he 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 of output than at 99 units of output.
Business
1 answer:
kirza4 [7]3 years ago
5 0

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.

A downward-sloping demand curve simply means that when there's a reduction in the price of a good, the consumers will purchase more of that product.

Based on the information given, when selling the 100th widget, the firm will always receive less marginal revenue on the 100th widget than it received on the 99th widget. The marginal revenue is the increase in revenue based on an additional unit of output that's sold.

Read related link on:

brainly.com/question/25472149

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Explanation:

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<h3>Hello there!</h3>

Your question asks what an opportunity cost of an action is.

<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>

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An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.

A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.

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