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.

 

 

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