How Is Marginal Revenue for a Monopolist Computed

question 173

Multiple Choice

How is marginal revenue for a monopolist computed

• A)average revenue divided by quantity sold
• B)average revenue times quantity divided by price
• C)total revenue divided by quantity sold
• D)change in total revenue divided by change in quantity sold

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Definitions:

Vertical Intercept

The point at which a line meets the vertical axis of a graph.

Dependent Variable

A variable that changes as a consequence of a change in some other (independent) variable; the “effect” or outcome.

Independent Variable

In statistical and mathematical models, the variable that is manipulated or changed to observe its effect on a dependent variable.

Candy Store

A retail establishment specializing in the sale of candies, sweets, and similar confectionery products.