Question :
11) Refer to Table 10-1. For a single-price monopolist producing : 1384235
11) Refer to Table 10-1. For a single-price monopolist producing and selling 9 units, the marginal revenue earned by selling the 9th unit is
A) -4.
B) -2.
C) 0.
D) 2.
E) 4.
12) Refer to Table 10-1, which displays the demand schedule for a single-price monopolist. At what level of output is marginal revenue equal to 0?
A) between 6 and 7 units
B) between 7 and 8 units
C) between 8 and 9 units
D) between 9 and 10 units
E) between 10 and 11 units
13) Refer to Table 10-1, which displays the demand schedule for a single-price monopolist. At what level of output is total revenue maximized for this firm?
A) between 6 and 7 units
B) between 7 and 8 units
C) between 8 and 9 units
D) between 9 and 10 units
E) between 10 and 11 units
14) Refer to Table 10-1, which displays the demand schedule for a single-price monopolist. Which of the following statements about price elasticity of demand is true?
A) demand is unit-elastic at a price of $4
B) demand is elastic at a price of $8
C) demand is elastic at a price of $5
D) demand is inelastic at a price of $8
E) demand is elastic at a price of $3
15) Refer to Table 10-1, which displays the demand schedule for a single-price monopolist. At what level of demand is the price elasticity of demand equal to 1?
A) between 6 and 7 units
B) between 7 and 8 units
C) between 8 and 9 units
D) between 9 and 10 units
E) between 10 and 11 units
16) Refer to Figure 10-1. Suppose this single-price monopolist is initially selling 5 units at $8 each and then reduces the price of the product to $6. By making this change, the firm is giving up revenue of ________ on the original number of units sold and gaining revenue of ________ on the additional units sold. Its marginal revenue is therefore ________. (All figures are dollars.)
A) 38; 40; 2
B) 8; 6; 2
C) 10; 12; 2
D) 14; 14; 0
E) 5; 7; -2
17) Refer to Figure 10-1. Suppose this single-price monopolist is initially selling 9 units at $4 each and then reduces the price of the product to $3. By making this change, the firm is giving up revenue of ________ on the original number of units sold and gaining revenue of ________ on the additional units sold. Its marginal revenue is therefore ________. (All figures are dollars)
A) 40; 27; -13
B) 30; 36; 6
C) 34; 28; -6
D) 9; 3; -6
E) 3; 9; 6
18) Refer to Figure 10-1. What is the lowest level of output at which marginal revenue becomes negative?
A) 5th unit
B) 6th unit
C) 7th unit
D) 8th unit
E) 9th unit
19) If a single-price monopolist sets price where the price elasticity of demand exactly equals 1, its
A) total profits are at a maximum.
B) marginal revenue is always positive.
C) total revenue is rising, although marginal revenue is falling.
D) total revenue is falling.
E) total revenue is at its maximum.
20) Consider a profit-maximizing single-price monopolist that faces a linear demand curve. The firm sets price where the price elasticity of demand is
A) zero.
B) less than one.
C) one.
D) greater than one.
E) infinite.
