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In order to sell more units, a monopolist must lower its prices. As shown in the table below, total revenue will initially ____________ and then
In order to sell more units, a monopolist must lower its prices. As shown in the table below, total revenue will initially ____________ and then ______________.
a. | increase, continue to increase | |
b. | decrease, continue to decrease | |
c. | increase, decrease | |
d. | decrease, increase |
TABLE 10.2 Calculating the Monopolist's Marginal Revenue Total Quantity of customers Price of Marginal revenue per 1,000 customers (MR) A(TR) (TR) Formula: Q)X (P) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 S0 $0.00 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 90,000 160,000 210,000 70,000 50,000 30,000 10,000 -10,000 250,000 240,000 210,000 160,000 90,000 0.00 -70,000
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