If a Nondiscriminating Pure Monopolist Decides to Sell One More

question 123

Multiple Choice

If a nondiscriminating pure monopolist decides to sell one more unit of output, the marginal revenue associated with that unit will be

• A) equal to its price.
• B) the price at which that unit is sold less the price reductions that apply to all other units of output.
• C) the price at which that unit is sold plus the price increases that apply to all other units of output.
• D) indeterminate unless marginal cost data are known.

---

Definitions:

Trade Deficit

A situation where a country’s imports exceed its exports during a given time period, leading to a negative balance of trade.

Capital

All means of production (mainly plant and equipment) created by people.

Better Paid

Describes a position or job that offers a higher salary compared to others, often reflecting skill level, experience, or demand.

Foreign Workers

Employees from other countries working in a nation different from their homeland, often to fill labor shortages.