A demand curve that is linear and downward sloping

A demand curve that is linear and downward sloping:
A)  means that marginal revenue is equal to price.
B)  means that total revenue is always upward sloping.
C)  will result in a marginal revenue that is greater than price.
D)  has a price elasticity of demand that is equal to -1 when marginal revenue is equal to zero.


The XYZ Company is a profit-maximizing firm with a monopoly in the production of pennants. The firm sells its pennants for $10 each. We can conclude that the XYZ Company is producing a level of output at which:
A)  average total cost equals $10.
B)  average total cost is greater than $10.
C)  marginal revenue equals $10.
D)  marginal cost equals marginal revenue.


Suppose that a profit-maximizing monopoly firm experiences a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost, the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:
A)  fall.
B)  remain unchanged.
C)  rise.
D)  It is not possible to make a determination from the information given.