Exhibit 8-2 Demand and Cost Information for a Monopoly The Marginal Revenue of the Second Unit of Output in

question 59

Multiple Choice

Exhibit 8-2 Demand and cost information for a monopoly $$\begin{array} { | c | c | c | } \hline \mathbf { Q } & \mathbf { P } & \mathbf { T C } \\\hline 0 & 40 & 10 \\1 & 30 & 15 \\2 & 20 & 25 \\3 & 10 & 40 \\4 & 0 & 60 \\\hline\end{array}$$ The marginal revenue of the second unit of output in Exhibit 8-2 is:

• A) 10.
• B) 20.
• C) 30.
• D) 40.

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Definitions:

Estimated Line of Cost Behavior

A projection or forecast of how costs will change with different levels of activity.