A Monopolist Increased Output by 100 Units but Cut Prices

question 75

Multiple Choice

A monopolist increased output by 100 units but cut prices by $20 to sell this additional output at $1,000 per unit. What is TRUE about marginal revenue?

• A) MR totals $2,000.
• B) MR totals $100,000.
• C) MR totals -$2,000.
• D) MR cannot be calculated with the information given.