Table 15-21 Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination. COSTS REVENUES Quantity Produced 0 1 2 3 4 5 6 7 8 Total Cost $100 $140 $184 $230 $280 $335 $395 $475 $575 Marginal Cost ← Quantity Demanded 0 1 2 3 4 5 6 7 8 Price $170 $160 $150 $140 $130 $120 $110 $100 $95 Total Revenue Marginal Revenue Refer to Table 15-21. If the monopolist can engage in perfect price discrimination, what is the marginal revenue from selling the 5th tie? O a. $80 O b. $100 OC. $120 O d. $110

Table 15-21 Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination. COSTS REVENUES Quantity Produced 0 1 2 3 4 5 6 7 8 Total Cost $100 $140 $184 $230 $280 $335 $395 $475 $575 Marginal Cost ← Quantity Demanded 0 1 2 3 4 5 6 7 8 Price $170 $160 $150 $140 $130 $120 $110 $100 $95 Total Revenue Marginal Revenue Refer to Table 15-21. If the monopolist can engage in perfect price discrimination, what is the marginal revenue from selling the 5th tie? O a. $80 O b. $100 OC. $120 O d. $110

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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