Figure 7.1 shows a monopolist's demand curve. If the monopolist were to maximize its total revenue, it would produce ________ units of output and charge a price of ________.
A. 3; $5
B. 4; $4
C. 5; $3
D. 6; $2
Answer: B
You might also like to view...
Which of the following creates a positive social rate of return?
a. Providing a free secondary education to the public b. Paying higher wages to workers with college degrees c. Offering government grants to private universities d. Earning an advanced degree at a public university
Average revenue is equal to
a. TR/Q. b. (P × Q)/P. c. TR × Q d. All of the above are correct.
Evidence from experiments in which real people play the ultimatum game supports the idea that people
a. are rational wealth-maximizers. b. tend to be driven by fairness, without regard for their own self-interest. c. are driven by both fairness and self-interest. d. have trouble calculating their own levels of wealth.
Suppose that government decides to create a license for widget makers. Only licensed widget makers are allowed to produce widgets. Moreover, only half of the current widget producers are eligible to obtain the license. What will happen with the supply curve of widgets?
A) It will not change. B) It will shift to the left. C) It will shift to the right. D) It will slope downwards.