If a Monopolist Increases Quantity by One Unit, but Sells

question 5

Multiple Choice

If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,

• A) marginal revenue is affected by adding one additional unit sold at the new price.
• B) all the previous units, which used to sell at a higher price, now sell for more.
• C) the marginal revenue of selling a unit is more than the price of the unit.
• D) because of higher output the marginal revenue curve is above the demand curve.

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Definitions:

British America

Historically refers to the territories under British rule in the Americas from the 16th to the early 20th centuries, including the Thirteen Colonies.

South Carolina's

Pertaining to the state of South Carolina, its history, people, politics, or geographical characteristics.

Stono Rebellion

A slave uprising in 1739 in South Carolina that led to a severe tightening of the slave code and the temporary imposition of a prohibitive tax on imported slaves.

Slave Code

Laws established in the colonial and antebellum South to define the status of slaves and the rights of masters, severely restricting slaves' freedoms and rights.