A Monopoly Earns Total Revenue of $20,000 When It Sells

question 89

True/False

A monopoly earns total revenue of $20,000 when it sells 200 units of output and total revenue of $22,000 when it sells 240 units of output. Thus, the marginal revenue of the 240th unit is $91.67.

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Definitions:

Zaibatsu

A large Japanese business conglomerate, typically family-owned, existing before World War II and involved in multiple industries.

Marketing Effort

The combination of all activities and strategies applied by a company to promote and sell its products or services to its target audience.

Operational Execution

The ability of an organization to effectively implement plans and strategies to achieve desired outcomes.

Sales Response Function

A model that illustrates how sales volume is influenced by various marketing-mix elements and environmental factors.