When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $690. In order to sell three units of output instead of only two, the monopolist must
A. decrease its price by $70 per unit.
B. decrease its price by $30 per unit.
C. decrease its price by $90 per unit.
D. make no change in price and increase output by one unit.
Answer: A
You might also like to view...
According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best
a. True b. False Indicate whether the statement is true or false
Jamaal lost his job when a mechanical device replaced people with his skills. If Jamaal's skills are non-transferable, he would be considered to be structurally unemployed
Indicate whether the statement is true or false
Which of the following scenarios are illustrated in the give PPC? (check all that apply)
a. An economy in full employment along the curve b. Unemployment at point W c. Output combination C is better than the output combination B d. Attainable combinations of both goods below the curve
A market in which there are many firms each selling differentiated products is most likely a ________ market.
A. perfectly competitive B. monopoly C. monopolistically competitive D. natural monopoly