The Following Figure Shows the Demand Curve and Marginal Revenue

question 35

Multiple Choice

The following figure shows the demand curve and marginal revenue curve for a monopolist who incurs a marginal cost of $2 per unit.

-Refer to Figure .What is the monopolist's revenue when he incurs a marginal cost of $2 per unit?

• A)$99
• B)$88
• C)$96
• D)$72

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Definitions:

Profit

The income earned when the total revenue from business activities is higher than the combined expenses, costs, and taxes necessary for those activities.

Proportions

The relationship between parts and a whole in terms of size, quantity, or degree.

Factor 2

A component or element that contributes to a particular result or situation.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.