When a Monopolist Sells Two Units of Output Its Total

question 385

Multiple Choice

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 $30 per unit.
• B) decrease its price by $70 per unit.
• C) make no change in price and increase output by one unit.
• D) decrease its price by $90 per unit.

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Audience

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Primary objectives or targets that an individual, group, or organization aims to achieve.