If the Marginal Revenue from the Tenth Unit of Output

question 25

Multiple Choice

If the marginal revenue from the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist and the marginal revenue from the ninth unit equals $6, then the price for the tenth unit is:

• A)equal to $4.
• B)is less than $4.
• C)is greater than $4.
• D)equal to $2.
• E)equal to $6.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.

Dividend-Related Liability

A financial obligation arising when a company declares dividends payable to shareholders, to be settled on the dividend payment date.

Stock Dividends Distributable

A portion of a company's earnings decided by the board of directors to be distributed to its shareholders in the form of additional shares.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company for reinvestment.