A Monopolist Can Sell 20 Units a Week at a Price

question 6

Multiple Choice

A monopolist can sell 20 units a week at a price of $10 per unit. To sell 21 units a week, it would have to lower its price to $9 per unit. The marginal revenue of the 21^st unit would be:

• A)$9.
• B)−$11.
• C)−$12.
• D)−$20.
• E)$11.

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Definitions:

Exclusivity

A contractual agreement where one party grants another party sole rights regarding a specific business function, product, or service.

Codify

The process of collecting and systematizing laws, rules, or regulations into a code or coherent system.

Mining Partner

An individual or entity that enters into a partnership with others to engage in the exploration or extraction of minerals.

Transferable Interest

The portion of a member's ownership in an LLC or partnership that can be transferred or sold.