Question

Use the figure below to answer the following question. Price (dollars per unit 100 80 60 40 20 MR 40 60 80 Quantity (units per week 20 Figure 13.2.1 15) Refer to Figure 13.2.1. This single-price monopoly producesunits per day and charges 15) a price of $ per unit A) 40: 50 B) 20: 75 C) zero; 0 D) 20; 20 E) 20: 50 16) To increase sales from 7 units to 8 units, a single-price monopolist must drop the price from $7 16) per unit to $6 per unt. What is marginal revenue in this range? A) -SI B) S48 C) S6 D) SI E) $7 Use the figure below to answer the following questiovn.

Use the figure below to answer the following question. Price (dollars per unit 100 80 60 40 20 MR 40 60 80 Quantity (units per week 20 Figure 13.2.1 15) Refer to Figure 13.2.1. This single-price monopoly producesunits per day and charges 15) a price of $ per unit A) 40: 50 B) 20: 75 C) zero; 0 D) 20; 20 E) 20: 50 16) To increase sales from 7 units to 8 units, a single-price monopolist must drop the price from $7 16) per unit to $6 per unt. What is marginal revenue in this range? A) -SI B) S48 C) S6 D) SI E) $7 Use the figure below to answer the following questiovn.

Answer 1

Question 15

A single-price monopolist produces that level of output corresponding to which MR curve intersects the MC curve.

The MR curve is intersecting the MC curve corresponding to the output of 20 units.

The price corresponding to 20 units is $75 per unit (with respect to the demand curve).

So,

This single-price monopoly produces 20 units per day and charges a price of $75 per unit.

Hence, the correct answer is the option (B).

Question 16

At the price of $7 per unit, the monopolist can sell 7 units.

TR = $7 * 7 = $49

At the price of $6 per unit, monopolist can sell 8 units.

TR = $6 * 8 = $48

Calculate the marginal revenue -

MR = TR when 8 units are sold - TR when 7 units are sold = $48 - $49 = -$1

The marginal revenue in this range is -$1.

Hence, the correct answer is the option (A).