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

---

Definitions:

Volatility

Denotes the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns, indicating the stability or instability of markets.

Systematic Risk

The inherent risk associated with the entire market or market segment, also known as market risk, which cannot be diversified away.

Market Risk

The risk of losses in investments caused by factors affecting the overall performance of the financial markets, also known as systematic risk.

Economic Outlook

An analysis or forecast of the future economic condition, including expectations for growth, inflation, and employment.