When a monopolist increases sales by one unit,
A. it gains some marginal revenue from selling that extra unit.
B. more low priced sales cause negative marginal revenues.
C. every other unit must now be sold at a lower price.
D. it loses some marginal revenue and all of the above.
Answer:D
When a monopolist increases sales by one unit,
A. it gains some marginal revenue from selling that extra unit. B. more low priced sales cause negative marginal revenues. C. every other unit must now be sold at a lower price. D. it loses some marginal revenue and all of the above.
Explanation: 54. If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,