Suppose a Single-Price Monopoly Sells 3 Units of a Good

question 100

Multiple Choice

Suppose a single-price monopoly sells 3 units of a good at $20 per unit.If the monopoly sells 4 units,the total revenue increases to $72.What is the marginal revenue of the fourth unit?

• A) $52
• B) $18
• C) $60
• D) $12
• E) $20

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Definitions:

Social Exchange Theory

An analytical framework that suggests human relationships are transactions aiming to maximize one's benefits and minimize costs, grounded on principles of reciprocity and fairness.

Rational Behavior

implies making decisions based on logical reasoning, aiming for the most efficient outcome considering the available information.

Family Systems Theory

A theoretical perspective that views the family as an emotional unit and uses systems thinking to describe the complex interactions within the unit.

Equilibrium

A state of balance or stability within a system, where competing forces or influences are in equal opposition.