When a monopolist sells two units of output its total revenues are $100. When the monopolist sells three units of output its total revenues are $120. When the monopolist sells three units of output, the price per unit is:
A. $6.67.
B. $20.
C. $33.33.
D. $40.
Answer: D
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Which of the following is not an example of a demand shock?
a. A reduction in government spending b. An increase in income tax rates c. A change in oil prices. d. A money supply increase. e. An increase in government spending.
If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force?
A) 1 million B) 20 million C) 475 million D) 481 million
The profit-maximizing monopolist will never operate in a price range over which
A. P > MC. B. demand is inelastic. C. P > MR. D. the demand curve slopes downward.
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to:
A. lower the price sellers keep after paying the tax. B. raise the price consumers pay from $3 to $4. C. raise the price sellers keep after paying the tax. D. lower the price consumers pay from $3 to $2.