A Monopolist Faces a Straight- Line Demand Curve and Is

question 9

Multiple Choice

A monopolist faces a straight- line demand curve and is currently producing an output level of 2000 units receiving $10 000 in total revenue.At an output of 1000 units the marginal revenue for this firm would be

• A)$10.00
• B)$5.00.
• C)$2.50.
• D)0.
• E)Impossible to tell with the given information.

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Definitions:

Ordinary Simple Interest Rate

The standard method of calculating interest, typically based on the original loan amount, rate, and time.

360-Day Year

A conventional method in finance where the year is assumed to have 360 days for simplifying interest rate calculations, commonly used in commercial lending.

Exact Simple Interest

Interest calculated based on the actual number of days in the loan period divided by the exact number of days in a year, typically 365 or 366.

365-Day Year

A conventional method used in finance that assumes all years have 365 days for the purpose of interest calculation.