The Following Graph Gives Cost and Revenue Data for a Monopolist

question 14

Multiple Choice

The following graph gives cost and revenue data for a monopolist:

-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its resulting total revenue?

• A)$700.
• B)$2,400.
• C)$2,750.
• D)$3,000.
• E)$3,150.

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Definitions:

Interest Rate Parity

A financial theory stating that the difference in interest rates between two countries will be offset by changes in the exchange rate between their currencies.

Covered Interest Arbitrage

The practice of exploiting the interest rate differential between two countries while hedging against exchange rate risk using forward contracts.

Portfolio's Beta

A measurement that indicates the volatility, or systematic risk, of a portfolio relative to the overall market.

S&P500 Value

The numerical value representing the collective performance of the 500 largest companies listed on stock exchanges in the United States, as measured by the Standard & Poor's index.