If a Monopolist Increases Output from 14 to 15 by Lowering

question 68

Multiple Choice

If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is:

• A) $1.
• B) $17.
• C) $448.
• D) $465.

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, resulting in harm or damage.

Design Defect

A flaw in the planning or design of a product that makes it inherently unsafe or faulty.

Alternative Design

A different approach or solution, often proposed to address flaws in an original design concept.

Market-Share Liability

A legal theory holding manufacturers proportionately liable for damages based on their market share of a harmful product.