A monopoly sells 5 units of output at $20. If the MR of the 6th unit is $14, then the price of the 6th unit is

Refer to the figure above. Suppose Starbucks charges $3.50 per cup for its latte. Which of the following is true?

i. At this price, the demand for Starbucks latte is inelastic. ii. If Starbucks raises the price of its latte, its revenue will increase. iii. If Starbucks lowers the price of its latte, it will increase its revenue. A) Only iii B) Only i C) Only ii D) i and ii E) i and iii

A U.S.-based multinational has two subsidiaries, one in Lithuania where the tax rate is 15%, and one in Ireland where the tax rate is 2%. The tax rate in the U.S. is 35%

If the Lithuanian-based subsidiary is transferring a good to the Irish subsidiary and the goal is to avoid taxes, it will A) sell it to the U.S. parent at a transfer price equal to marginal cost, which will then sell it to the Irish subsidiary at monopoly level pricing. B) set the transfer price to the Irish subsidiary at the monopoly level. C) set the transfer price to the Irish subsidiary at marginal cost. D) Unable to determine with the information given.