-Roxie's Movie Theatre is the only one in town. The table above gives the demand schedule for movies. If Roxie's is a single-price monopoly and the marginal cost of a movie is $6, Roxie's will charge ________ a movie and will sell ________ movie tickets a week.
A) $15; 100
B) $12; 200
C) $6; 400
D) $9; 300

Question

-Roxie's Movie Theatre is the only one in town. The table above gives the demand schedule for movies. If Roxie's is a single-price monopoly and the marginal cost of a movie is $6, Roxie's will charge ________ a movie and will sell ________ movie tickets a week.
A) $15; 100 
B) $12; 200 
C) $6; 400 
D) $9; 300

Quizplus · Accepted Answer

A single-price monopoly maximizes profit where marginal cost equals marginal revenue. Given the demand schedule, the price of $12 corresponds to selling 200 tickets, which is likely where marginal revenue equals the marginal cost of $6.

-Roxie's Movie Theatre Is the Only One in Town