Suppose That a Monopolist Increases Production from 10 Units to 11

question 97

Multiple Choice

Suppose that a monopolist increases production from 10 units to 11 units.If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:

• A) $1.
• B) $9.
• C) $19.
• D) $29.

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Definitions:

Fraction

A numerical quantity that represents a part of a whole, typically in the form of a numerator divided by a denominator.

Exponent

A number that indicates how many times a base is multiplied by itself.

Fraction

A mathematical expression representing the division of one quantity by another, noted by a numerator divided by a denominator.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource or input.