A Single-Price Monopoly Faces a Linear Demand Curve

question 146

Multiple Choice

A single-price monopoly faces a linear demand curve.If the marginal revenue for the second unit is $20,then the marginal revenue for the

• A) first unit is less than $20.
• B) third unit is less than $20.
• C) third unit is more than $20.
• D) third unit is also $20.
• E) more information is needed to determine if the marginal revenue for the third unit is more than, less than, or equal to $20.

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Definitions:

Alternative-Choice Close

A sales technique where the salesperson presents the potential buyer with two choices, both leading to a sale, in an effort to close the deal.

Buying Decision

The process of evaluating and choosing from available alternatives to purchase a product or service.

Question Close

A sales strategy that involves closing a deal by asking the customer a question that assumes the sale has been made.

Purchase Manager

An individual responsible for acquiring goods and services for their organization at the best possible price.