A Monopolist Faces a Linear,downward-Sloping Demand Curve

question 277

Multiple Choice

A monopolist faces a linear,downward-sloping demand curve.If the slope of the demand curve is 2 (where price is on the y-axis and quantity on the x-axis) and the monopolist can sell four units of output at a price of $16.What is the marginal revenue from selling the fourth unit of output?

• A) $1
• B) $4
• C) $10
• D) $18

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Definitions:

Retrolental Fibroplasia

A disease of the eye affecting prematurely born infants that can lead to retinal detachment and blindness, also known as retinopathy of prematurity.

Esotropia

A condition where one or both eyes turn inward, often referred to as "crossed eyes."

Accommodation

The ability of the eye to change its focus from distant to near objects, involving the adjustment of the lens shape.

Phacolysis

The surgical dissolution or fragmentation of the lens of the eye, usually to treat cataracts.