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.

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Definitions:

Favorable Balance

A financial situation where the credits or revenues are greater than debits or expenses, leading to a net positive outcome.

Balance of Trade

The difference between a country's exports and imports of goods and services.

Exports

Goods or services sold by a country to buyers in other countries, contributing to the exporting nation’s economy.

Imports

Goods or services brought into one country from another to satisfy domestic consumption or production needs.