Table 14-4
A monopolist faces the following demand curve:

-Refer to Table 14-4.The monopolist will not produce
A) 5 units or fewer under any circumstances.
B) 7.5 units or fewer under any circumstances.
C) 7.5 units or more under any circumstances.
D) 10 units or more under any circumstances.

Question

Table 14-4
A monopolist faces the following demand curve:
 
-Refer to Table 14-4.The monopolist will not produce
A) 5 units or fewer under any circumstances. 
B) 7.5 units or fewer under any circumstances. 
C) 7.5 units or more under any circumstances. 
D) 10 units or more under any circumstances.

Quizplus · Accepted Answer

A monopolist will not produce where marginal cost exceeds marginal revenue. Producing 10 units or more likely results in marginal cost exceeding marginal revenue, leading to losses.

Table 14-4 A Monopolist Faces the Following Demand Curve