XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers, its total revenue is $1,000 and if it sells three, its total revenue is $1,300. The marginal revenue of the third color printer sold is
A. $100.
B. $150.
C. $300.
D. $1,300.
Answer: C
You might also like to view...
A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the
A) tax is paid by the seller to the government and is, therefore, like a cost of production. B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply. C) higher price causes entry into the market. D) tax shifts the demand curve leftward.
The monopolistically competitive firm differs from monopoly in that its
A. demand curve is flatter. B. demand curve slopes downward. C. MR curve lies below its demand curve. D. profit is maximized where MR = MC.
The aggregate demand curve slopes downward because of
a. the real wealth effect, the interest rate effect, and the price level effect b. the real wealth effect, the money supply effect, and the international trade effect c. the interest rate effect, the international trade effect, and the real GDP effect d. the real wealth effect, the interest rate effect, and the international trade effect e. the real wealth effect, the interest rate effect, and the net export effect
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A. The technology for growing wheat has improved. B. Land that was once used to grow wheat is now being used to graze sheep. C. The economy has acquired new resources that are well suited for producing wool. D. The economy is producing more bread by choosing to produce less wool.