A Monopolist Can Sell 300 Units of Output for $45

question 177

Multiple Choice

A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.60 per unit. The marginal revenue of the 301^st unit of output is

• A)-$120.00.
• B)-$75.40.
• C)-$0.40.
• D)$75.40.

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Definitions:

Dishonored

A term typically used in banking and finance to refer to a payment instrument, such as a check or promissory note, that has been refused or rejected by the payer's bank due to insufficient funds or other reasons.

Interest-Bearing Note

A debt instrument in which the issuer pays interest to the holder, usually at a fixed rate, until the note reaches maturity.

Interest Revenue

Income earned from lending money or investing in interest-bearing assets.

Maturity Value

The total amount that will be paid to an investor at the end of a fixed income security's life, including principal and interest.