(Table: Prices and Demand) Look at the Table Prices and Demand.The

question 127

Essay

(Table: Prices and Demand) Look at the table Prices and Demand.The New Orleans Saints have a monopoly on Saints logo baseball hats.The Saints sell at most one hat to each customer, and the table shows each customer's willingness to pay.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5, the quantity effect is a(n):
A.decrease in total revenue of $20
B.increase in total revenue of $20
C.decrease in total revenue of $8
D.increase in total revenue of $8.

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Definitions:

Credit Memorandum

Increase in depositor’s balance.

Original Price

The initial selling price of a good or service before any discounts, deductions, or adjustments are applied.

Debit Memorandum

Decrease in depositor’s balance.

Perpetual Inventory Method

A system of inventory management where adjustments to inventory records are made on a continuous basis as sales and purchases happen.