Asked by
Sahajveer Singh Sidhu
on Nov 29, 2024
Verified
A nondiscriminating pure monopolist finds that it can sell its 50th unit of output for $50.We can surmise that the marginal:
A) cost of the 50th unit is also $50.
B) revenue of the 50th unit is also $50.
C) revenue of the 50th unit is less than $50.
D) revenue of the 50th unit is greater than $50.
Nondiscriminating Monopolist
A monopolist who charges the same price to all consumers regardless of their individual demand or willingness to pay.
Marginal Revenue
The supplementary income earned from the sale of one extra unit of a good or service.
50th Unit
A reference to the specific item in a series or set, often used in discussions about production and consumption at various levels.
- Understand the distinction between a monopolist's marginal revenue and price and how it influences the maximization of profits.
Verified Answer
DP
Learning Objectives
- Understand the distinction between a monopolist's marginal revenue and price and how it influences the maximization of profits.