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Refer to the Table Shown, Which Shows the Demand Schedule

Question 54

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 $2,000:  Price of computers ($)  Quantity demanded per year 5,0001004,0002003,0003002,0004001,000500\begin{array}{|c|c|}\hline \text { Price of computers }(\$) & \text { Quantity demanded per year }\\\hline 5,000 & 100 \\\hline 4,000 & 200 \\\hline 3,000 & 300 \\\hline 2,000 & 400 \\\hline 1,000 & 500 \\\hline\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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