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The Figure Below Shows the Demand Schedule and Demand Curve

Question 57

Multiple Choice

The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
 Price ($)   Quantity  Demanded n576675849310211\begin{array}{ll}\text { Price (\$) } & \begin{array}{l}\text { Quantity } \\\text { Demanded }\end{array} \\\hline n & 5 \\7 & 6 \\6 & 7 \\5 & 8 \\4 & 9 \\3 & 10 \\2 & 11\end{array}
 The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.   \begin{array}{ll} \text { Price (\$)  } & \begin{array}{l} \text { Quantity } \\ \text { Demanded } \end{array} \\ \hline n & 5 \\ 7 & 6 \\ 6 & 7 \\ 5 & 8 \\ 4 & 9 \\ 3 & 10 \\ 2 & 11 \end{array}    FIGURE 10- 1 -If a single- price monopolist's price equals marginal cost,the firm A) will find it more profitable to produce a greater output. B) is producing where MR = MC and thus is maximizing profits. C) should definitely shut down. D) could increase its profits by lowering output and raising price. E) should maintain its current price because it is a price taker. FIGURE 10- 1
-If a single- price monopolist's price equals marginal cost,the firm


A) will find it more profitable to produce a greater output.
B) is producing where MR = MC and thus is maximizing profits.
C) should definitely shut down.
D) could increase its profits by lowering output and raising price.
E) should maintain its current price because it is a price taker.

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