Table 15-18 A Monopolist Faces the Following Demand Curve: Suppose Marginal

question 367

Multiple Choice

Table 15-18
A monopolist faces the following demand curve: Suppose marginal cost is constant at $8 per unit.
-Refer to Table 15-18. When the price effect on revenue is greater than the output effect, marginal revenue is

• A)positive. This occurs with the 3rd unit of output.
• B)positive. This occurs with the 4th unit of output.
• C)negative. This occurs with the 5th unit of output.
• D)negative. This occurs with the 6th unit of output.