Suppose a Monopolist Faces the Following Demand Curve

question 134

Multiple Choice

Suppose a monopolist faces the following demand curve.  
The marginal revenue of the 35ᵗʰ unit of output is:

• A)$20.
• B)$10.
• C)$0.
• D)$−5.

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Definitions:

Payables Turnover

A financial ratio that measures how fast a company pays its suppliers, calculated as the cost of sales divided by average accounts payable.

Cash Cycle

The duration of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Receivables Period

The average number of days required for a company to receive payments owed by its customers for goods or services rendered.

Inventory Period

The average length of time items are held in inventory before being sold.