Suppose That a Pure Monopolist Can Sell 20 Units of Output

question 102

Multiple Choice

Suppose that a pure monopolist can sell 20 units of output at $10 per unit and 21 units at $9.75 per unit.The marginal revenue of the 21st unit of output is

• A)$9.75.
• B)$204.75.
• C)$4.75.
• D)$.25.

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Definitions:

Departmental Expenses

are costs that are directly incurred by a specific department within an organization and are typically allocated directly to that department.

Direct Operating

Expenses directly associated with the day-to-day operations of a business, such as costs for materials and labor used in producing goods or services.

Sporting Goods Department

A section within a retail store or company that specializes in selling equipment and apparel for various sports and outdoor activities.

Direct Expense

A cost that can be directly traced to producing specific goods or services, such as raw materials and labor.