When a monopoly increases its output and sales,

a. both the output effect and the price effect work to increase total revenue.
b. the output effect works to decrease total revenue and the price effect works to increase total revenue.
c. both the output effect and the price effect work to decrease total revenue.
d. the output effect works to increase total revenue and the price effect works to decrease total revenue.

The correct answer is letter "D": the output effect works to increase total revenue and the price effect works to decrease total revenue.

Explanation:

The output effect in a monopoly takes place when the price of input will raise the production costs of a business and reduce its output level and vice-versa. The price effect refers to the impact an activity has on the value of something. The price effect consists of the effect of substitution and the effect of profits. While the output effect has the purpose of increasing revenue, the price effect works towards decreasing it.

answer; the correct answer to the above statement is (true);

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o