Question 6 of 20<>A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21jackets. Assume the monopolist cannot price discriminate.When charging $100 per jacket, total revenue isWhen charging $98 per jacket, total revenue isSo the marginal revenue of selling the 21st jacket is$What is true about any firm facing a downward-sloping demand curve?Marginal revenue is always%24%24%24 What is true about any firm facing a downward-sloping demand curve?Marginal revenue is alwaysequal to price.less than price.more than price.

A monopolist can sell 20 jackets at a price of $100 each. Total revenue = Price * Quantity =>Total revenue = $100 * 20 => Total revenue = $2000 Answer: When charging $100 per jacket, total revenue is $2000A monopolist can sell 21 jackets at a price of $98 each. Total revenue = Price * Quantity =>Total revenue = $98 * 21 => Total revenue = $2058 Answer: When charging $98 per jacket, the total revenue is $2058Total revenue from selling 20 jackets is $2000 Total revenue from selling 21 jackets is $2058 => Marginal revenue = (change in total revenue / change in output) => Marginal revenue = ($2058 - $2000) / (21 -20) => Marginal revenue = $58 / 1 => Marginal revenue = $58 Answer: The marginal revenue from selling the 21st jackets is $58 The demand curve shows the price at each level of quantity. The demand curve is downward sloping, the associated marginal revenue curve is always below the demand curve. Hence, the marginal revenue is always less than the price. Answer: Less than price

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A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21 ackets. Assume the monopolist cannot price discriminate. When charging $100 per jacket, total revenue is $ When charging $98 per jacket, total revenue is $

A monopolist makes self-cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 21 ackets. Assume the monopolist cannot price discriminate. When charging $100 per jacket, total revenue is $ When charging $98 per jacket, total revenue is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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