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.

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Definitions:

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Junctions between nerve cells where acetylcholine is released as a neurotransmitter to transmit signals across the nervous system.