Question
When a monopolist increases sales by one unit
a)more low priced sales caused negative marginal
b)every other unit must be sold at a lower price
c)gains some revenue from selling the extra unit
D)loses some revenue and all of the above
a)more low priced sales caused negative marginal
b)every other unit must be sold at a lower price
c)gains some revenue from selling the extra unit
D)loses some revenue and all of the above
Answers
Reed
Since your question says nothing about the price of the unit to the purchaser, your answer is C. If the monopolist was undercutting competitors so as to gain market share, the answer might be different.