Figure 7.1 -Figure 7.1 Shows a Monopolist's Demand Curve. If the Monopolist

question 85

Multiple Choice

Figure 7.1
-Figure 7.1 shows a monopolist's demand curve. If the monopolist increases output from two to three units, what is its marginal revenue?

• A) $3
• B) $5
• C) $12
• D) $15

---

Definitions:

Budget Line

A graphical depiction of all possible combinations of goods that can be purchased with a given budget at specific prices.

Nonlabor Income

Income received that does not come from employment or work, such as dividends, interest on savings, or benefits.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate.

Gross Demand

The total quantity of a good or service demanded across all market segments before considering supply constraints or competition.