A Monopolist Can Sell 200 Units of Output for $36

question 178

Multiple Choice

A monopolist can sell 200 units of output for $36.00 per unit.Alternatively,it can sell 201 units of output for $35.80 per unit.The marginal revenue of the 201ˢᵗ unit of output is

• A)$-4.20.
• B)$-0.20.
• C)$4.20.
• D)$35.80.

---

Definitions:

RSP

Registered Savings Plan, a financial account in Canada designated for holding savings and investment assets, with special tax benefits for retirement savings.

Monthly Compounded

Pertains to interest or any financial metric that is calculated and added to the principal balance every month.

Nominal Rate

The stated interest rate of a bond or loan, not accounting for compounding or inflation effects.

Annually Compounded

An investment or interest calculation method where the interest earned over the year is added to the principal at year-end, affecting the amount earned the following year.