(Table) Suppose a Monopolist Faces the Demand Schedule Shown in the Table

question 69

Multiple Choice

(Table) Suppose a monopolist faces the demand schedule shown in the table. If the firm is currently selling 4 units per day and wants to sell 5 units per day, what is the effect on total revenue for this sale of one additional unit?
$\begin{array}{|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { Demanded }\end{array} & \text { Price } \\\hline 1 & \$ 10 \\\hline 2 & \$ 8 \\\hline 3 & \$ 7 \\\hline 4 & \$ 5 \\\hline 5 & \$ 3 \\\hline 6 & \$ 2 \\\hline\end{array}$

• A) Total revenue falls by $5.
• B) Total revenue rises by $20.
• C) There is no effect on total revenue.
• D) Total revenue falls by $15.

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Definitions:

Face Perception

The cognitive process that involves the recognition and interpretation of human faces, allowing individuals to identify others, assess emotions, and interpret social cues.

Schematic Human Face

A simplified representation of a human face, typically used in psychology to study recognition, perception, and infant development.

Exogenous Eye Movements

Eye movements initiated by external stimuli, such as moving objects or changes in the visual field, rather than by internal thought processes.

Looking Behavior

The act of directing one’s gaze towards something, often studied in psychological research to understand focus and interest.