If a Monopolist Increases Sales from 10 to 11 by Lowering

question 197

Multiple Choice

If a monopolist increases sales from 10 to 11 by lowering its price from $40 to $38, its marginal revenue is:

• A) $2.
• B) $18.
• C) $400.
• D) $418.

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Definitions:

Discrimination

The unfair and biased treatment of people from various groups, particularly based on their race, age, or gender.

Operant Conditioning

A pedagogical strategy where the frequency of a behavior is adjusted using encouragement or suppression.

Negative Reinforcement

A type of operant conditioning that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Unfavorable Stimulus

A stimulus considered unpleasant or adverse, which can alter behavior when removed following a specific action.