Use the Following to Answer Questions

question 96

Multiple Choice

Use the following to answer questions:
-(Table: Demand for Crude Oil) Look at the table Demand for Crude Oil. The marginal cost of producing crude oil is zero. If the crude oil industry is a monopoly, the price of crude oil will be _____, the total quantity of crude oil produced by the monopoly will be _____ barrels, and the monopoly will earn revenue equal to _____.

• A) $80; 80; $6,400
• B) $80; 80; $0
• C) $160; 0; $0
• D) $60; 100; $6,000

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Definitions:

Appreciated

An increase in the value of an asset or currency in comparison to other assets, currencies, or benchmarks.

Yen

The official currency of Japan, used as a medium of exchange in one of the world's largest economies.

Dollar Price

The cost of a good, service, or security expressed in terms of the U.S. dollar.

Import

Goods or services brought into one country from another for sale.