Use the Following Table to Answer Questions 15 - 18

question 22

Multiple Choice

Use the following table to answer questions 15 - 18
Assume the cost of producing the goods is zero

-Suppose the monopolist only sold the goods separately.What prices will the monopolist charge for Good 1 to maximize revenues for good 1?

• A)$4,500
• B)$5,000
• C)$1,500
• D)$1,000

---

Definitions:

Profits

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Concentration Ratios

Measures that indicate the extent to which a small number of firms occupy a large market share within an industry.

Covert Collusion

Secret or concealed agreements between firms to fix prices, limit production, or divide markets, in order to increase profits illegally.

Demand Curve

A graphical representation of the demand schedule showing the inverse relationship between price and quantity demanded.