A pure monopolist is selling 10 units at a price of $12. If the marginal revenue of the 11th unit is $1, then the price of the 11th unit is
A) $10.
B) $11.
C) greater than $12.
D) $12.
Answer: B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The price effect is the effect of a ________ on the quantity of the good ________
A) decrease in the price; demanded B) change in the price; supplied C) change in price and income; consumed D) change in the price; consumed
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is important to recognize that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. It is OK if the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it is justification for you producing it in-house
Fiona consumes pizzas and soda with her weekly income of $50 . Suppose pizzas cost $10 and sodas cost $2 . If the price of pizzas rises to $12, then her opportunity cost of consuming a pizza will increase to: a. 5 sodas
b. 6 sodas. c. 10 sodas. d. 12 sodas.