Table 14-6 A Monopolist Faces the Following Demand Curve

question 382

Multiple Choice

Table 14-6
A monopolist faces the following demand curve:

-Refer to Table 14-6.What is the marginal revenue from the sale of the 2nd unit?

• A) $-3
• B) $3
• C) $9
• D) $24

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Definitions:

Markup

The supplementary amount factored into the base price of goods to address fixed costs and earnings, influencing their final selling point.

Selling Price

The price a consumer disburses to obtain a product or service from a merchant.

Absorption Costing

An accounting method that includes all manufacturing costs—both variable and fixed—in the cost of goods sold, for product pricing.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of cost.