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12 October, 00:29

A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22. This implies that its sold output increases by

Multiple Choice

4 units per day.

3 units per day.

2 units per day.

1 unit per day.

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Answers (1)
  1. 12 October, 00:32
    0
    The correct answer is C (2 units)

    Explanation:

    Giving the following information:

    A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22.

    First, we need to calculate the actual revenue:

    Revenue = 6units * $15 = $90

    Now, we calculate the new revenue and calculate the total units sold:

    Revenue = 90 + 22 = $112

    Total units = $112/$14 = 8 units

    Incremental = 2 units
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Home » Business » A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22. This implies that its sold output increases by Multiple Choice 4 units per day. 3 units per day.
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