Suppose a Firm Has a Monopoly on the Sale of a Computer

question 302

Multiple Choice

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve. When selling the 50^th game, the firm will always receive

• A) less marginal revenue on the 50th game than it received on the 49th game.
• B) more average revenue on the 50th game than it received on the 49th game.
• C) more total revenue on the 50 games than it received on the first 49 games.
• D) Both b and c are correct.

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Definitions:

Mutuality

Partners’ acknowledgment that their lives are intertwined and thinking of themselves as a couple (“us”) instead of as two separate individuals (“me” and “you”).

Parasocial Relationship

A type of one-sided relationship where an individual becomes attached to a media persona or character without any reciprocal interaction.

Commitment

Partners’ investment of time, effort, and resources in their relationship, with the expectation that it will continue indefinitely.

Mutuality

The quality or condition of mutual transactions, exchanges, or feelings, implying a reciprocal relationship characterized by mutual respect or concern.