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.

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Definitions:

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.

Hypothesis Testing

A method in statistics to decide whether to accept or reject a hypothesis based on sample data, to determine the likelihood that a parameter related to the population is true.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study.