When the Monopoly Firm Sells Two Units of Its Product

question 27

Multiple Choice

When the monopoly firm sells two units of its product, it earns total revenue of $960 and it incurs a total cost of $870. If its marginal revenue for the second unit was $475, what was the marginal revenue of the first unit?

• A)$90
• B)$485
• C)$395
• D)$1,355
• E)There is not enough information to answer the question.

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Definitions:

Health-Promoting Behavior

Actions and habits that individuals engage in with the intention to improve or maintain good health and prevent illness.

Conscious Awareness

The state of being conscious of one's own existence, thoughts, feelings, and surroundings.

Elaboration Likelihood Model

A theory describing the change of attitudes through different routes of information processing based on the individual's motivation and ability to analyze a persuasive message.

Routes To Persuasion

Different pathways through which persuasive messages can lead to attitude change, including the central route and the peripheral route.