Assume a Non-Price Discriminating Monopolist Can Sell 20 Units of a Good

question 31

Multiple Choice

Assume a non-price discriminating monopolist can sell 20 units of a good for 4.00 each and can sell 21 units of that good for $ 3.85 each.The marginal revenue of the 21st unit is

• A) $85.00.
• B) $0.85.
• C) -$0.85.
• D) -$85.00.

---

Definitions:

War

A state of armed conflict between different countries or different groups within a country.

Merger

The combination of two or more companies into one, either by closing the old entities into one new entity or by one company absorbing the others.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is anti-competitive, considering if it has legitimate business purposes and its overall impact on competition.

Case

A specific instance or example of something, often used to study or illustrate a particular issue or principle.