Suppose That a Pure Monopolist Can Sell 15 Units of Output

question 53

Multiple Choice

Suppose that a pure monopolist can sell 15 units of output at $6 per unit and 16 units at $5.70 per unit. For the monopolist to profitably produce and sell the sixteenth unit of output, its marginal cost must be anywhere at or below

• A)$6.
• B)$5.70.
• C)$1.80.
• D)$1.20.

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Definitions:

Validity Effect

The tendency of people to believe that a statement is true or valid simply because it has been repeated many times.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining other people's behavior.

Cognitive

Relating to mental activities involved in the acquisition, processing, storage, and retrieval of information.

Feeling

A complex psychological state that involves physiological and cognitive components in response to stimuli or internal thoughts.