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A Chewing Gum Monopoly Can Sell 400,000 Packages of Gum

Question 81

Multiple Choice

A chewing gum monopoly can sell 400,000 packages of gum for $0.10 each. If it wants to sell 500,000 packages, its price must be


A) greater than the $0.10 if it doesn't want to earn less profit
B) less than the marginal revenue of the 500,000th package
C) less than $0.10
D) equal to $0.10
E) none of the above makes sense

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