Question : The following table shows the quantity of a good sold : 1377490

The following table shows the quantity of a good sold by a monopolist at different prices.

Quantity (units)

Price ($)

150

9

200

8

250

7

300

6

350

5

400

4

450

3

11) Refer to the table above. What is the marginal revenue of the monopolist when it sells 400 units of its product?

A) $2

B) -$2

C) $3

D) -$3

12) Refer to the table above. Which of the following statements is true of the monopolist’s marginal revenue?

A) As the monopolist reduces the price of its product from $9 through $3, the marginal revenue decreases.

B) As the monopolist reduces the price of its product from $9 through $3, the marginal revenue increases.

C) As the monopolist reduces the price of its product from $9 through $3, the marginal revenue first increases then decreases.

D) As the monopolist reduces the price of its product from $9 through $3, the marginal revenue first decreases then increases.

13) The quantity effect of a price decrease by a monopolist is based on:

A) the law of supply.

B) the law of demand.

C) the law of increasing returns.

D) the law of diminishing returns.

14) The quantity effect of a price reduction causes:

A) a decrease in revenue because of a lower price.

B) an increase in revenue because of increased sales.

C) an increase in labor demand due to increased sales of the product.

D) a decrease in labor demand because of a lower price of the final product.

15) The price effect of a price decrease by a monopolist refers to:

A) the loss in revenue due to the price reduction.

B) the increase in sales due to the price reduction.

C) the increase in revenue because of an increase in sales.

D) the decrease in the demand for labor due to the lower price of the final product.

16) Over a particular price range, if the quantity effect of a price decrease is larger than the price effect, it implies that:

A) demand is inelastic in the price range.

B) demand is elastic in the price range.

C) demand curve is vertical in the price range.

D) demand curve is upward sloping in the price range.

17) Over a particular price range, if the quantity effect of a price decrease is smaller than the price effect, it implies that:

A) demand is elastic in the price range.

B) demand is inelastic in the price range.

C) demand curve is horizontal in the price range.

D) demand curve is upward sloping in the price range.

18) Refer to the scenario above. What is the quantity effect of the price change?

A) $50

B) $75

C) $150

D) $300

19) Refer to the scenario above. What is the price effect of the price change?

A) $50

B) $75

C) $100

D) $250

20) Refer to the scenario above. What is the change in total revenue due to the price reduction?

A) The total revenue increases by $25.

B) The total revenue increases by $50.

C) The total revenue decreases by $105.

D) The total revenue decreases by $175.