If a Monopolist Can Sell 2 Units at Price of $200

question 364

Multiple Choice

If a monopolist can sell 2 units at price of $200 per unit and 3 units at a price of $180 per unit, its marginal revenue at an output of 3 is

• A) $-20.00.
• B) $80.00.
• C) $140.00.
• D) $180.00.

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, not when the obligation is incurred.

Comparability

An accounting principle that ensures financial statements can be compared between periods and across companies.

Financial Statements

Consolidated reports that summarize the financial performance, position, and cash flows of a business over a specified period.

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so they reflect the true financial position of a business.