A monopolist can sell 20 units a week at a price of $10 per unit. To sell 21 units a week, it would have to lower its price to $9 per unit. The marginal revenue of the 21st unit would be:
a. $9
b. -$11.
c. -$12.
d. -$20.
b
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Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States
What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S. consumption and U.S. production of sugar?
Refer to the above figure. Other things being equal, if price is at P2, then we would expect
A) price to decline until an equilibrium is achieved at P0. B) consumers to reduce their offering price for the good. C) an excess quantity demanded to occur. D) consumers to bid against each other for goods and force the price still higher.
The four phases of the business cycle are, in order: peak, downturn, trough, upturn.
Answer the following statement true (T) or false (F)
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.