When a Monopolist Increases Sales by One Unit

question 45

Multiple Choice

When a monopolist increases sales by one unit,

• A) it gains some marginal revenue from selling that extra unit.
• B) more low priced sales cause negative marginal revenues.
• C) every other unit must now be sold at a lower price.
• D) it loses some marginal revenue and all of the above.

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Definitions:

Optimism

The tendency to hold a positive outlook towards future events, believing that good rather than bad things will happen.

Potential Stress

Situations or conditions perceived as threats, challenges, or barriers that could induce stress if not managed properly.

Social Support System

The network of family, friends, colleagues, and other acquaintances upon which one relies for emotional, informational, and practical support.

Endocrine System

A system of ductless glands in various parts of the body that manufacture hormones and secrete them into the bloodstream, thus affecting cells in other parts of the body.