A Monopolist Can Sell 8,000 Units at a Price of $15.Lowering

question 150

Multiple Choice

A monopolist can sell 8,000 units at a price of $15.Lowering price by $2 raises the quantity demanded by 2,000 units.What is the change in total revenue that results from this price change?

• A) $10,000
• B) $4,000
• C) $130,000
• D) $90,000

Understand the role of the central nervous system in sensory processing and perception.

Understand the prevalence and demographic differences in mental disorder treatment.

Recognize symptoms and categorizations of various mental disorders, including speech and behavior patterns.

Identify the psychological and genetic factors contributing to mental health conditions.

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Definitions:

Selling Price

The price at which a product or service is offered to customers.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion of sales available to cover fixed costs and generate profit.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, salaries, and insurance.

Operating Leverage

A financial concept that measures the extent to which a firm can increase operating income by increasing revenue, highlighting the impact of fixed versus variable costs.