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.

Identify the transformative effects of specific technologies such as radio, television, and the internet on society and media consumption.

Analyze the role of advertising in shaping the broadcasting industry.

Understand the challenges and conflicts involved in the evolution of media technology.

Comprehend the social implications of emerging technologies on personal and collective practices.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Sales

The total revenue generated from goods or services sold by a company.

Product Costs

Costs that are assignable to the production of goods, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are recorded as expense in the period they are incurred, such as selling, administrative, and general expenses.