Asked by I’m Ashes on May 13, 2024
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A pure monopolist is selling six units at a price of $12.If the marginal revenue of the seventh unit is $5,then the:
A) price of the seventh unit is $10.
B) price of the seventh unit is $11.
C) price of the seventh unit is greater than $12.
D) firm's demand curve is perfectly elastic.
Marginal Revenue
The additional revenue a firm receives from selling one more unit of a good or service.
Pure Monopolist
A single seller in a market with no close substitutes for its product, setting the market price and output level.
Seventh Unit
A term that could refer to the incremental unit in a sequence, often used in contexts where items are categorized or measured in units.
- Perceive the association among demand, marginal revenue, and the strategies for setting prices in a monopolistic setting.
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Learning Objectives
- Perceive the association among demand, marginal revenue, and the strategies for setting prices in a monopolistic setting.
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