When price is $100, a monopoly can sell 5 units, and to sell a 6th unit, price must fall to $95 . Which of the following is the monopolist's marginal revenue from selling the 6th unit?
a. -$5
b. $10
c. $50
d. $70
d
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The intermediate zone in the middle of the short-run aggregate supply curve is upward sloping, so a rise in aggregate demand will cause higher output and price level, while a fall in aggregate demand will lead to ______ output and price level.
a. higher b. lower c. no change in d. surpluses in
A corporation's income is taxed
a. immediately after it is deposited in the bank. b. only before it is distributed to its owners. c. only after it is distributed to owners. d. both before and after it is distributed to owners.
Changes in government spending and/or taxes as the result of legislation, is called
What will be an ideal response?
The monopolistic competitor
A. produces at the minimum point of her average total cost curve. B. maximizes profits but does not minimize losses. C. is usually a small firm. D. can be a monopoly.