Refer to the Table Shown, Which Shows the Demand Schedule

question 28

Multiple Choice

Refer to the table shown, which shows the demand schedule for a firm that has a monopoly on the sale of computers in the country of Oz. If the monopolist is currently producing 400 computers per year and it seeks to maximize profit, it should: $$\begin{array} { | r | r | } \hline { \begin{array} { c } \text { Price df } \\\text { computer s(t) }\end{array} } & \text { Quantity demanded per year } \\\hline 5,000 & 100 \\\hline 4,000 & 200 \\\hline 3,000 & 300 \\\hline 2,000 & 400 \\\hline 1,000 & 500 \\\hline\end{array}$$

• A) increase output.
• B) decrease output.
• C) continue producing 400 units per year.
• D) lower the price of computers.

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Definitions:

Rembrandt

A Dutch painter and etcher, one of the greatest artists in history, known for his masterful use of light and shadow and psychological depth in portraits and Biblical scenes.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance.

Domestic Purchases

Involves buying goods and services that are produced within a country's borders.

Foreign Purchases

Transactions where consumers or businesses buy goods and services from another country, affecting the balance of trade.