Asked by
megan eldridge
on Oct 08, 2024
Verified
If a nondiscriminating pure monopolist decides to sell one more unit of output,the marginal revenue associated with that unit will be:
A) equal to its price.
B) the price at which that unit is sold less the price reductions that apply to all other units of output.
C) the price at which that unit is sold plus the price increases that apply to all other units of output.
D) indeterminate unless marginal cost data are known.
Nondiscriminating Monopolist
A monopolist who charges the same price to all customers for a good or service, without price differentiation.
Marginal Revenue
The increase in income realized from the sale of one additional product or service unit.
Price Reductions
A strategy where businesses lower the prices of their goods or services to increase demand or sales.
- Familiarize oneself with the variance between a monopolist's price and marginal revenue and its impact on the optimization of profits.
Verified Answer
AD
Learning Objectives
- Familiarize oneself with the variance between a monopolist's price and marginal revenue and its impact on the optimization of profits.