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Refer to the Table Shown, Which Shows the Demand Schedule

Question 56

Multiple Choice

Refer to the table shown, which shows the demand schedule for a firm that has a monopoly on the sale of computers in the country of Oz. If the firm were to set the price of computers at $2,000:  Price of computers ($) 5,0004,0003,0002,0001,000 Quantity demanded per year 100200300400500\begin{array}{c}\begin{array}{|c|}\hline \text { Price of computers }(\$) \\\hline 5,000 \\\hline 4,000 \\\hline 3,000 \\\hline 2,000 \\\hline 1,000 \\\hline\end{array}\begin{array}{c|}\hline \text { Quantity demanded per year }\\\hline 100 \\\hline 200 \\\hline 300 \\\hline 400 \\\hline 500 \\\hline \end{array}\end{array}


A) it would maximize profits.
B) marginal revenue would be negative.
C) the demand for computers would be elastic.
D) marginal revenue would be positive.

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