Author Question: A natural gas monopoly currently sells 100 cubic feet of gas at 1.10 per cubic foot. To sell one ... (Read 89 times)

beccaep · **on:** Jun 30, 2018

A natural gas monopoly currently sells 100 cubic feet of gas at 1.10 per cubic foot. To sell one more cubic foot, the natural gas company must lower the price of gas to 1.09 . Which of the following best describes the marginal revenue of the 101st cubic foot of natural gas?
a. The marginal revenue equals the price, or 1.09.
b. The marginal revenue equals the change in price, or 0.01.
c. The marginal revenue is less than 1.09.
d. The marginal revenue is greater than 1.09.

Question 2

If the international price of oranges is less than the domestic price of oranges in Spain, then Spain will export oranges to other countries.
a. True
b. False
Indicate whether the statement is true or false