The figure on the right shows the demand schedule for a product produced by a single-price monopolist. Price ($) 9 8 7 6 5 3 Quantity demanded OA. 32; 38; 6: OB. 36, 42, 6 OC. 7:9; -2 OD. 6; 4:2 OE. 11: 11:0 4 5 6 7 8 9 10 Using the graph on the right, suppose this single-price monopolist is initially selling 4 units at $9 each and then reduces the price of the product to $7. By making this change, the firm is giving up revenue of and gaining revenue of Its marginal revenue is therefore (All figures are dollars.) Price (S) 13- 12- 11- 10- 9- 8 9 10 11 12 13 14 15 Quantity

The figure on the right shows the demand schedule for a product produced by a single-price monopolist. Price ($) 9 8 7 6 5 3 Quantity demanded OA. 32; 38; 6: OB. 36, 42, 6 OC. 7:9; -2 OD. 6; 4:2 OE. 11: 11:0 4 5 6 7 8 9 10 Using the graph on the right, suppose this single-price monopolist is initially selling 4 units at $9 each and then reduces the price of the product to $7. By making this change, the firm is giving up revenue of and gaining revenue of Its marginal revenue is therefore (All figures are dollars.) Price (S) 13- 12- 11- 10- 9- 8 9 10 11 12 13 14 15 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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