A Monopoly Firm Can Sell 150 Units of Output for $10

question 213

Multiple Choice

A monopoly firm can sell 150 units of output for $10 per unit.Alternatively,it can sell 151 units of output for $9.95 per unit.The marginal revenue of the 151^st unit of output is

• A) $-2.45.
• B) $-0.05.
• C) $2.45.
• D) $9.95.

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Definitions:

Polarization

The process in which opinions and attitudes become more extreme, often leading to increased division within groups or societies.

Indexing

Avoiding generalizations by using statements that separate one situation, person, or example from another.

Arbitrary

Refers to decisions or actions not based on system or rules but rather on personal discretion or random choice.

Context Bound

Referring to communication or behavior that is heavily influenced by its surrounding circumstances, environment, or cultural setting.