If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,
A. marginal revenue is affected by adding one additional unit sold at the new price.
B. all the previous units, which used to sell at a higher price, now sell for more.
C. the marginal revenue of selling a unit is more than the price of the unit.
D. because of higher output the marginal revenue curve is above the demand curve.
Answer:A
If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,
A. marginal revenue is affected by adding one additional unit sold at the new price. B. all the previous units, which used to sell at a higher price, now sell for more. C. the marginal revenue of selling a unit is more than the price of the unit. D. because of higher output the marginal revenue curve is above the demand curve.
Explanation: 55. _____________ and __________________ refer to the quantity and price at a point in time.