A Monopolist Increased Output by 100 Units but Cut Prices

question 75

Multiple Choice

A monopolist increased output by 100 units but cut prices by $20 to sell this additional output at $1,000 per unit. What is TRUE about marginal revenue?

• A) MR totals $2,000.
• B) MR totals $100,000.
• C) MR totals -$2,000.
• D) MR cannot be calculated with the information given.

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Definitions:

Velocity

A physical vector quantity that denotes the rate of change of position of an object with respect to time, including both speed and direction.

Venae Cavae

The two large veins that return deoxygenated blood to the heart; consisting of the superior and inferior vena cava.

Blood Pressure

Blood pressure is the force that circulating blood exerts against the walls of blood vessels, essential for maintaining the body's circulatory function.

Capillaries

The smallest blood vessels in the body's circulatory system, facilitating the exchange of water, oxygen, carbon dioxide, and other nutrients between blood and tissues.