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A Monopoly Firm Can Sell 150 Units of Output for $10

Question 5

Multiple Choice

A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is


A) -$6.98.
B) -$0.02.
C) $2.45.
D) $6.98.

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