Currently,a Monopolist's MR = $10 and Its MC = $5

question 38

Multiple Choice

Currently,a monopolist's MR = $10 and its MC = $5 and it serves 10 consumers.An 11^th consumer walks in.Should the company provide service to the additional customer?

• A)Yes,MR > MC,so it should provide service to the additional customer.
• B)Yes,MR is equal to the number of customers,so it should provide service to the additional customer.
• C)No,MR > MC,so it should not provide service to the additional customer.
• D)No,MC is less than the number of customers,so it should not provide service to the additional customer.

---

Definitions:

Mutual Give-and-take

A reciprocal relationship or exchange where both parties benefit from giving something to the other.

Perspective

The capacity to view things in their true relations or relative importance, often considering different viewpoints or angles.

Rules

Explicit or implicit principles or guidelines that govern behavior in various contexts and systems.

Regulations

Rules or directives made and maintained by an authority to control or govern behavior, often within a specific industry or activity.