The Table Given Below Shows the Price,marginal Revenue and Marginal

question 32

Multiple Choice

The table given below shows the price,marginal revenue and marginal cost of a monopolist at different levels of the output.The firm does not incur a fixed cost of production. Table 10.4

- Refer to Table 10.4.Assuming that the monopolist is maximizing profits,the price the monopolist will charge is _____.

• A)$13.
• B)$14.
• C)$12.
• D)$16.
• E)$15.

Understand the concept of equilibrium price and how it is determined by the intersection of supply and demand curves.

Explain how changes in demand and supply influence market equilibrium price and quantity.

Identify the effects of government interventions, such as taxes, on market prices and quantities.

Recognize conditions that lead to surplus or shortage in the market and their implications on prices.

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Definitions:

Price Mechanism

The method through which changes in supply and demand cause prices to increase or decrease, directing how resources are distributed in a market-based economy.

Market Failure

An instance where goods and services are distributed by an unregulated market in a manner that is not optimum, frequently causing a reduction in the total wellbeing of society.

Public Sector

The part of an economy that is controlled by the government, including public services and enterprises.

Capitalist Societies

Social systems that rely on private ownership of the means of production and operate on profit and market competition.