A Single-Price Monopolist Sets Its Price for Good X at $75

question 105

Multiple Choice

A single-price monopolist sets its price for good X at $75 and is selling more than one unit of good X. Which of the following must be true?

• A)The average cost of that unit must be $75.
• B)The marginal cost of that unit must be $75.
• C)The marginal revenue of that unit must be $75.
• D)The marginal revenue of that unit must be less than $75.

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Definitions:

"Hickory Dickory Dock"

A traditional English nursery rhyme about a mouse running up a clock.

Operant Behavior

A type of behavior that is controlled by its consequences, including rewards and punishments.

Consequences

Outcomes or effects that result from a previous action or decision.

Extrinsic Rewards

Rewards that come from an outside source, such as money, grades, or praise, and are not inherently related to the activity being performed.