Reference: Ref 14-1 (Figure: Monopolist) Refer to the Figure

question 103

Multiple Choice

Reference: Ref 14-1 (Figure: Monopolist) Refer to the figure. Based on the demand curves for a monopolist's product in two different markets- Market A and Market B-if the monopolist were to charge a uniform price of $10 in both markets, how much profit would the monopolist lose?

• A) $234.75
• B) $146.25
• C) $48.75
• D) $97.50

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Definitions:

Government Imposes

Actions taken by governmental bodies to regulate, control, or influence various aspects of economic or social life through laws, regulations, or directives.

Demand Price

The highest price a consumer is willing to pay for a good or service, reflecting the value placed on it.

Quota Limit

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specified time frame.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price is charged for a product, with the aim of ensuring affordability by limiting how much prices can increase.