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A Monopolist Sells 2,000 Units for $20 Each

Question 7

Multiple Choice

A monopolist sells 2,000 units for $20 each. The total cost of producing 2,000 units is $30,000. If the price falls to $19, the number of units sold increases to 2,100. The total cost of producing 2,100 units is $30,075. When the monopolist reduces its price from $20 to $19, its marginal revenue will


A) increase.
B) decrease.
C) stay the same.
D) be zero.

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