Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table, at what level of output is its marginal revenue maximized?
A. 2,400
B. 2,800
C. 3,200
D. 3,600
Answer: A
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The MRTS is currently -2. The wage rate is $15 per hour and the rental rate is $30 per hour. It follows that
a. the marginal product of capital is twice that of labor. b. the marginal product of labor is twice that of capital. c. the marginal product of capital is equal to that of labor. d. no statement about marginal productivity can be made without more information.
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. their agreement is likely to eventually collapse. C. they will charge a higher price than a monopolist would have charged. D. they will earn a larger profit than a monopolist would have earned.
Frictional unemployment is often thought to explain relatively long spells of unemployment
a. True b. False Indicate whether the statement is true or false
Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate?
a. corporate bond, municipal bond, U.S. government bond b. corporate bond, U.S. government bond, municipal bond c. municipal bond, U.S. government bond, corporate bond d. U.S. government bond, municipal bond, corporate bond