The Following Figure Shows the Demand Curve Faced by a Monopolist

question 21

Multiple Choice

The following figure shows the demand curve faced by a monopolist.

-Refer to the figure above.What is the change in total revenue due to a price reduction from $6 to $4?

• A) Total revenue increases by $300.
• B) Total revenue decreases by $600.
• C) Total revenue increases by $200.
• D) Total revenue increases by $600.

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Definitions:

Rationalization

An attempt to logically justify one's behavior or feelings with plausible explanations, often to conceal the true reasons.

Repression

Keeping the unconscious from consciousness by pushing it away.

Moving Against

Gaining control in a competitive world through exploitativeness and aggressiveness.

Moving Toward

Connecting with others as a way of dealing with anxiety.