A Nondiscriminating Pure Monopolist Finds That It Can Sell Its

question 74

Multiple Choice

A nondiscriminating pure monopolist finds that it can sell its 50^th unit of output for $50.We can surmise that the marginal:

• A) cost of the 50^th unit is also $50.
• B) revenue of the 50^th unit is also $50.
• C) revenue of the 50^th unit is less than $50.
• D) revenue of the 50^th unit is greater than $50.

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Definitions:

Price

The cash amount forecasted, required, or paid out for acquiring something.

Normal Good

A product or service for which demand increases as consumer income increases, and vice versa, demonstrating a direct relationship between income and demand.

Income

The financial gain earned by an individual or entity, typically through wages, investments, or other forms of revenue.

Demand

The desire to own goods or services combined with the ability and willingness to pay for them.