If a monopolist lowers its price to increase sales from 100 to 200 units, then the
a. price at the 200th unit will be less than the marginal revenue of the 200th unit
b. price at the 100th unit will be greater than the marginal revenue of the 200th unit
c. profit earned producing 200 units will be greater than the profit earned producing 100 units
d. price at the 200th unit will be greater than the marginal revenue of the 200th unit
e. profit earned producing 100 units will be greater than the profit earned producing 200 units
D
You might also like to view...
In a perfectly competitive market, a permanent decrease in demand initially brings a lower price, economic
A) loss, and entry into the market. B) loss, and exit from the market. C) profit, and entry into the market. D) profit, and exit from the market.
Refer to above figure, which represents a duopoly industry. What would be the likely total industry payoff or profit?
A) $8 million B) $9 million C) $10 million D) $14 million E) zero