Suppose the Accompanying Table Describes the Demand for a Good

question 98

Multiple Choice

Suppose the accompanying table describes the demand for a good produced by monopolist. $$\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity } \\\hline \$ 10 & 1 \\\hline \$ 9 & 2 \\\hline \$ 8 & 3 \\\hline \$ 7 & 4 \\\hline \$ 6 & 5 \\\hline \$ 5 & 6 \\\hline \$ 4 & 7 \\\hline\end{array}$$  
Based on the data in the table, we know the firm should: 

• A)be able earn an economic profit.
• B)produce more than 7 units.
• C)not produce the seventh unit.
• D)not produce the fifth unit.

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Definitions:

Stopping Distance

The total distance a vehicle travels from the point when the driver first perceives a need to stop, to when the vehicle comes to a complete halt.

Inversely Proportional

A relationship between two variables where their product is constant. When one variable increases, the other decreases proportionally.

Daily Demand

The total quantity of a good or service that consumers want to purchase over the course of a single day.

Radical Expression

An expression involving roots, such as square roots or cube roots, of numbers.