A pure monopoly can promote 20 toys per day for $8 each. To promote 21 toys per day, the charge need to be reduce to $7. The marginal revenue of the twenty first toy is Multiple Choice -$10.
A price-discriminating monopolist will cost excessive expenses to those whose demand for the product will stay inelastic and will cost lifelike expenses to these whose demand for the product will remain elastic.
In a pure monopoly, there is solely one company, and it sets all the rules, prices, and terms. Monopolist corporations can maximize their profits by means of calculating the most efficient fee and quantity, as the cross-elasticity of demand between the product and that of rivals is minimal or nil.
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