Use the Following Table to Answer Questions 15 - 18

question 21

Multiple Choice

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

-What is a better pricing strategy for the monopolist? At this price,what are the total profits to the monopolist?

• A)Bundle the goods at $4,500;Profits=$9,000
• B)Bundle the goods at $6,000;Profits=$12,000
• C)Bundle the goods at $5,000;Profits=$10,000
• D)Bundle the goods at $9,500;Profits=$19,000

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Definitions:

Monthly Payments

Regular payments made once a month, commonly in the context of loans, rent, or other agreements.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

A financial instrument providing a steady series of payments to a person, mainly utilized as a source of income for people in retirement.

Compounded Monthly

The method of calculating interest where the interest earned is added to the principal at the end of each month, leading to interest on interest in subsequent months.