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A Monopolist Increased Output by 100 Units but Cut Prices

Question 75

Multiple Choice

A monopolist increased output by 100 units but cut prices by $20 to sell this additional output at $1,000 per unit. What is TRUE about marginal revenue?


A) MR totals $2,000.
B) MR totals $100,000.
C) MR totals -$2,000.
D) MR cannot be calculated with the information given.

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