FIGURE 10- 4 Suppose a Monopolist Faces the Demand Curve

question 72

Multiple Choice

FIGURE 10- 4 Suppose a monopolist faces the demand curve and cost curves shown below.

-Suppose that a single- price monopolist knows the following information: $\begin{array} {| l |l |l |l |l |l |l |l | }\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { Fixed Cost} & \text { TC } & \text { ATC } & \text { MC }\\\hline \$ 10.00&1500&&\$ 7.00&\$6000&&\$5.00&\$5.00\\\hline \end{array}$
The monopolist could maximize profits by

• A)lowering price and increasing output.
• B)lowering price and leaving output unchanged.
• C)shutting down.
• D)staying at the current price and output.
• E)raising price and leaving output unchanged.

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Definitions:

Electron Transport System

A series of complexes that transfer electrons through a membrane within mitochondria or chloroplasts to generate a gradient for ATP production.

ATP

Adenosine triphosphate, a molecule that provides energy for many processes in living cells by being converted to ADP (adenosine diphosphate).

NADPH

Nicotinamide adenine dinucleotide phosphate, a coenzyme involved in anabolic reactions, such as lipid and nucleic acid synthesis, acting as a reducing agent.

Autotrophs

Organisms capable of producing their own food through photosynthesis or chemosynthesis, utilizing sunlight or chemical reactions.