The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
FIGURE 10- 1
-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
And gaining revenue of _. Its marginal revenue is therefore . (All figures are dollars.)
A) 10; 12; 2
B) 8; 6; 2
C) 38; 40; 2
D) 5; 7; - 2
E) 14; 14; 0
Correct Answer:
Verified
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