A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21 ackets. Assume the monopolist cannot price discriminate. When charging $100 per jacket, total revenue is $ When charging $98 per jacket, total revenue is $
A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21 ackets. Assume the monopolist cannot price discriminate. When charging $100 per jacket, total revenue is $ When charging $98 per jacket, total revenue is $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 6 of 20
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A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21
jackets. Assume the monopolist cannot price discriminate.
When charging $100 per jacket, total revenue is
When charging $98 per jacket, total revenue is
So the marginal revenue of selling the 21st jacket is
$
What is true about any firm facing a downward-sloping demand curve?
Marginal revenue is always
%24
%24
%24

Transcribed Image Text:What is true about any firm facing a downward-sloping demand curve?
Marginal revenue is always
equal to price.
less than price.
more than price.
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