A Monopolist Changes Price from $1 to $2 and Sells

question 20

Multiple Choice

A monopolist changes price from $1 to $2 and sells 10 fewer units.The marginal revenue is

• A) $10.
• B) -$10.
• C) $0.
• D) impossible to determine with the information provided.

Apply the 75% revenue test for determining reportable segments.

Understand the criteria for combining operating segments for reporting purposes.

Discern the required financial disclosures for each operating segment.

Understand the significance of intersegment transactions for segment reporting.

---

Definitions:

Risk Averse

A tendency to prefer options that have fewer risks and more certain outcomes.

Net Earnings

The profit (or loss) of a business after all expenses have been deducted from revenues.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Net Earnings Per Share

A financial ratio calculated by dividing the net income of a company by the average number of its outstanding shares, indicating the company's profitability per share.