Author Question: Refer to the table above. Which of the following statements is true of the monopolist's marginal ... (Read 47 times)

bcretired · **on:** Jun 29, 2018

Refer to the table above. Which of the following statements is true of the monopolist's marginal revenue?

A) As the monopolist reduces the price of its product from 9 to 3, the marginal revenue decreases.
B) As the monopolist reduces the price of its product from 9 to 3, the marginal revenue increases.
C) As the monopolist reduces the price of its product from 9 to 3, the marginal revenue first increases then decreases.
D) As the monopolist reduces the price of its product from 9 to 3, the marginal revenue first decreases then increases.

Question 2

Refer to the table above. If the market is perfectly competitive, the equilibrium quantity of calculators is:

A) 3 units.
B) 5 units.
C) 6 units.
D) 8 units.