A Monopolist Finds Out That If He Lowers His Price

question 81

Multiple Choice

A monopolist finds out that if he lowers his price from $10 to $8, sales rise from 100 units to 115 units. Therefore, in this price range,

• A) marginal revenue is positive.
• B) marginal revenue is negative.
• C) the price elasticity of demand is greater than one.
• D) both a and c are correct.

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Definitions:

Allele Frequencies

The proportion of different genetic variants of a gene in a population, denoting the genetic diversity at that specific locus.

Mutation-Selection Balance

An evolutionary principle describing the equilibrium achieved when the rate of new mutations equals the rate of removal of disadvantageous alleles by natural selection.

Deleterious Allele

A genetic variant that tends to have a negative effect on the fitness or survival of an organism.

Fixed Genetic Locus

A specific location on a chromosome where the genetic variation has become identical across all members of a population due to evolutionary processes.