A Firm Can Sell 22 Units at $20,but to Sell

question 63

Multiple Choice

A firm can sell 22 units at $20,but to sell 23 units,the price is cut to $19.The marginal revenue derived from selling the 23rd unit is

• A)$9.
• B)$3.
• C)0.
• D)-$3.
• E)-$9.

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Definitions:

Economic Profits

The disparity between a company's overall income and its combined direct and indirect expenses.

Close Substitutes

Products or services that can serve almost the same purpose, making them almost interchangeable in the eyes of consumers.

Monopolistically Competitive Industry

A market structure where many firms sell products that are similar but not identical, allowing for competition based on factors other than just price.

Monopolistic Competitor

A firm in a market structure where many companies sell products or services that are similar but not identical, allowing for significant differentiation and competition.