A Monopolist Can Sell 10,000 Units at a Price of $17

question 55

Multiple Choice

A monopolist can sell 10,000 units at a price of $17. Lowering price by $2 raises the quantity demanded by 2,000 units. What is the change in total revenue that results from this price change?

• A)$10,000
• B)$4,000
• C)$180,000
• D)$90,000

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Definitions:

Net Loss

Occurs when a company's total expenses exceed its total revenues during a specific period, resulting in a negative profit.

Operations

The day-to-day activities necessary for an organization to function effectively, including production, sales, and administration processes.

Articles of Partnership

A document that formalizes an agreement between parties to form a business partnership, outlining the roles, responsibilities, and share of profits among the partners.

Annual Salary

The total amount of money that an employee is paid over the course of a year for their work.