Question 1

Table 15-2
Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information.
 
-Refer to Table 15-2.What is the marginal cost of the 6th shirt?

Accepted Answer

The answer of Table 15-2
Dreher's Designer Shirt Company,a monopolist,has the...

Question 2

Table 15-1
 
-Refer to Table 15-1.If the monopolist sells 8 units of its product,how much total revenue will it receive from the sale?

Accepted Answer

The price of the first 8 units is $14, so the total revenue will be:
8 x $14 = $112. Therefore, option C is correct.

Question 3

Table 15-1
 
-Refer to Table 15-1.What is the marginal revenue for the monopolist for the sixth unit sold?

Accepted Answer

The marginal revenue for the monopolist equals the change in total revenue divided by the change in quantity sold. Looking at Table 15-1, the total revenue for selling six units is $30, and the total revenue for selling five units is $25, resulting in a change in total revenue of $5. Therefore, the marginal revenue for the sixth unit sold is $5, which corresponds to answer choice B.

There is no other best choice as only one option is correct.

Question 4

Table 15-1
 
-Refer to Table 15-1.If the monopolist wants to maximize its revenue,how many units of its product should it sell?

Accepted Answer

The monopolist should produce the quantity where marginal revenue (MR) equals marginal cost (MC). At quantity 6, MR is $14, which is equal to MC. Therefore, producing 6 units will maximize revenue. At quantities above 6, the MR falls below MC, resulting in a decrease in revenue. At quantities below 6, the MR is greater than MC, indicating that the monopolist can increase revenue by producing more.

Question 5

Table 15-2
Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information.
 
-Refer to Table 15-2.What is the marginal cost of the 8th shirt?

Accepted Answer

The marginal cost of the 8th shirt can be found by subtracting the cost of producing 8 shirts ($720) from the cost of producing 9 shirts ($810). So, marginal cost = $90. To determine the best choice, we need to compare marginal cost to marginal revenue (which can be found in the last column of the table). The marginal revenue for the 8th shirt is $80, which is less than the marginal cost of $90. Therefore, producing the 8th shirt would result in a loss. The best choice for the firm is to produce up to the quantity where marginal cost equals marginal revenue, which is 7 shirts in this case.

Question 6

Figure 15-4 
-Refer to Figure 15-4.A profit-maximizing monopoly's total revenue is equal to

Accepted Answer

In a monopoly, total revenue is calculated by multiplying the price at which the product is sold (P4) by the quantity sold (Q2).

Question 7

Table 15-1
 
-Refer to Table 15-1.When 4 units of output are produced and sold,what is average revenue?

Accepted Answer

The answer of Table 15-1
 
-Refer to Table 15-1.When 4...

Question 8

Scenario 15-2
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 15-2.The firm's profit-maximizing price is

Accepted Answer

The profit-maximizing price for a monopoly is the same as its average revenue, which is given as $60.

Question 9

Figure 15-5 
-Refer to Figure 15-5.At the profit-maximizing level of output,

Accepted Answer

The answer of Figure 15-5 
-Refer to Figure 15-5.At the...

Question 10

Table 15-2
Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information.
 
-Refer to Table 15-2.What is the total revenue from selling 6 shirts?

Accepted Answer

The answer of Table 15-2
Dreher's Designer Shirt Company,a monopolist,has the...

Question 11

Table 15-1
 
-Refer to Table 15-1.Assume this monopolist's marginal cost is constant at $12.What quantity of output (Q)will it produce and what price (P)will it charge?

Accepted Answer

The answer of Table 15-1
 
-Refer to Table 15-1.Assume this...

Question 12

Figure 15-5 
-Refer to Figure 15-5.A profit-maximizing monopoly will charge a price of

Accepted Answer

A profit-maximizing monopoly will set the price where marginal revenue equals marginal cost, which in this case is at output level Q3 where the demand curve intersects with the marginal cost curve. This corresponds to a price of P4.

Question 13

Figure 15-5 
-Refer to Figure 15-5.A profit-maximizing monopoly's total revenue is equal to

Accepted Answer

Total revenue is equal to price times quantity. At the profit-maximizing output, Q3, the price is P4. So total revenue is P4 x Q3.

Question 14

Scenario 15-2
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 15-2.At Q = 500,the firm's marginal cost is

Accepted Answer

To maximize profit, a monopoly firm produces where MR = MC. At Q = 500, the firm's MR is $30. Therefore, the firm's MC at Q = 500 must also be $30 for profit maximization. The question does not provide information on the firm's MC, but it can be inferred that it must be equal to the MR at the profit-maximizing level of output. Therefore, the answer is B.

Question 15

Figure 15-5 
-Refer to Figure 15-5.A profit-maximizing monopoly's profit is equal to

Accepted Answer

Profit maximization occurs where marginal revenue equals marginal cost (MR=MC). In the given graph, this occurs at Q3 output level. Therefore, the profit-maximizing quantity is Q3. The price that can be charged for this quantity is P4, the point on the demand curve where Q3 intersects. The total profit earned by the monopoly, then, is (P4-P1)x Q3, as this is the rectangle representing the monopoly's total revenue minus total cost (at Q3 output level). Therefore, the correct answer is (C).

Question 16

Scenario 15-2
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 15-2.At Q = 500,the firm's profit is

Accepted Answer

Profit is calculated as (Average Revenue - Average Total Cost) * Quantity. Here, (60 - 34) * 500 = $13,000.

Question 17

Figure 15-5 
-Refer to Figure 15-5.A profit-maximizing monopoly's total cost is equal to

Accepted Answer

A profit-maximizing monopoly's total cost is calculated by multiplying the average cost (P1) by the quantity produced (Q3).

Question 18

Figure 15-5 
-Refer to Figure 15-5.A profit-maximizing monopoly will produce an output level of

Accepted Answer

A profit-maximizing monopoly will produce where MR=MC. In the given graph, MR=MC at the intersection of the marginal cost curve and the demand curve at Q3. Therefore, Q3 is the output level that will maximize the monopoly's profits.

Question 19

Figure 15-5 
-Refer to Figure 15-5.Profit on a typical unit sold for a profit-maximizing monopoly would equal

Accepted Answer

In a profit-maximizing monopoly, profit per unit is the difference between price (P4) and average total cost (P1).

Question 20

Scenario 15-2
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 15-2.At Q = 500,the firm's total revenue is

Accepted Answer

Total revenue is calculated as average revenue multiplied by quantity, so $60 * 500 = $30,000.

Quiz 15: Monopoly

Table 15-2 Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information. -Refer to Table 15-2.What is the marginal cost of the 6th shirt?

Table 15-1 -Refer to Table 15-1.If the monopolist sells 8 units of its product,how much total revenue will it receive from the sale?

Table 15-1 -Refer to Table 15-1.What is the marginal revenue for the monopolist for the sixth unit sold?

Table 15-1 -Refer to Table 15-1.If the monopolist wants to maximize its revenue,how many units of its product should it sell?

Table 15-2 Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information. -Refer to Table 15-2.What is the marginal cost of the 8th shirt?

Figure 15-4 -Refer to Figure 15-4.A profit-maximizing monopoly's total revenue is equal to

Table 15-1 -Refer to Table 15-1.When 4 units of output are produced and sold,what is average revenue?

Scenario 15-2 A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34. -Refer to Scenario 15-2.The firm's profit-maximizing price is

Figure 15-5 -Refer to Figure 15-5.At the profit-maximizing level of output,

Table 15-2 Dreher's Designer Shirt Company,a monopolist,has the following cost and revenue information. -Refer to Table 15-2.What is the total revenue from selling 6 shirts?

Table 15-1 -Refer to Table 15-1.Assume this monopolist's marginal cost is constant at $12.What quantity of output (Q) will it produce and what price (P) will it charge?

Figure 15-5 -Refer to Figure 15-5.A profit-maximizing monopoly will charge a price of

Figure 15-5 -Refer to Figure 15-5.A profit-maximizing monopoly's total revenue is equal to

Scenario 15-2 A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34. -Refer to Scenario 15-2.At Q = 500,the firm's marginal cost is

Figure 15-5 -Refer to Figure 15-5.A profit-maximizing monopoly's profit is equal to

Scenario 15-2 A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34. -Refer to Scenario 15-2.At Q = 500,the firm's profit is

Figure 15-5 -Refer to Figure 15-5.A profit-maximizing monopoly's total cost is equal to

Figure 15-5 -Refer to Figure 15-5.A profit-maximizing monopoly will produce an output level of

Figure 15-5 -Refer to Figure 15-5.Profit on a typical unit sold for a profit-maximizing monopoly would equal

Scenario 15-2 A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34. -Refer to Scenario 15-2.At Q = 500,the firm's total revenue is