A Monopoly Firm Can Sell 150 Units of Output for $10

question 5

Multiple Choice

A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is

• A) -$6.98.
• B) -$0.02.
• C) $2.45.
• D) $6.98.

---

Definitions:

Statistical Inference

The process of drawing conclusions about a population based on sample data, using probability theory to estimate population parameters.

Probability Sampling

A sampling technique in which every member of the population has a known, non-zero chance of being selected.

Representative Sample

A subset of a population that accurately reflects the characteristics of the entire group, crucial for reliable research or data analysis.

Data Collection

The process of gathering and measuring information on variables of interest in a systematic fashion.