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When a Monopolist Sells Two Units of Output Its Total

Question 183

Multiple Choice

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. In order to sell three units of output instead of only two, the monopolist must


A) increase its price by $30 per unit.
B) decrease its price by $90 per unit.
C) make no change in price and increase output by one unit.
D) decrease its price by $30 per unit.

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