Table 17-2

question 365

Multiple Choice

Table 17-2. The table shows the town of Pittsville's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline.

-Refer to Table 17-2.If the market for gasoline in Pittsville is a monopoly,then the profit-maximizing monopolist will charge a price of

• A) $8 and sell 200 gallons.
• B) $5 and sell 500 gallons.
• C) $2 and sell 800 gallons.
• D) $0 and sell 1,000 gallons.

---

Definitions:

Par-value

The face value of a bond or stock, as stated by the issuing company, which is typically the amount paid out at maturity for bonds.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, taking into account both current income and capital gains or losses.

Zero-coupon Bonds

Debt securities that are issued at a discount to their face value and do not pay interest during their life but are redeemed at full face value at maturity.

Yield To Maturity

The total return expected on a bond if the bond is held until its maturity date, incorporating both interest payments and the capital gain or loss.