Suppose That a Monopolist Can Sell Five Units of Output

question 188

Multiple Choice

Suppose that a monopolist can sell five units of output at a price of $5 or six units of output at a price of $4. What is the marginal revenue of the sixth unit?

• A) $24
• B) $49
• C) -$1
• D) $4

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Definitions:

Medicare

A federal health insurance program primarily for people who are 65 or older, providing coverage for hospital care, medical services, and prescription drugs.

Baby Boom Generation

Refers to the demographic cohort born approximately between 1946 and 1964, noted for its significant rise in birth rates.

Medical Services

Healthcare activities provided by professionals to maintain, restore, or improve individuals' health.

Health-Care Expenditures

The financial resources spent on medical services and health care by individuals, organizations, or governments.