If a Monopolist Can Sell 7 Units When the Price

question 467

Multiple Choice

If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then the marginal revenue of selling the eighth unit is equal to

• A)$3.
• B)$4.
• C)$24.
• D)-$4.

Recognize how external economic forces like inflation and recession affect the overall economy and individual financial decisions.

Identify changes in consumer income levels and their impact on spending habits.

Understand the concept of discretionary income and its calculation.

Recognize the impact of economic behaviors and conditions on discretionary income.

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Definitions:

Equilibrium Quantity

The amount of products or services available and sought after at the market's balance price.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Excess Demand

A scenario in which the demand for a product or service surpasses the supply available at the existing price.

Surplus

An excess of production or supply over demand.