The Diagram Below Shows the Demand Curve Facing a Single-Price

question 84

Multiple Choice

The diagram below shows the demand curve facing a single-price monopolist. FIGURE 10-4
-Refer to Figure 10-4.Suppose the firm is currently at point C on the demand curve,selling 300 units at $40 per unit.If the firm moves to point D,the revenue the firm gives up on the units it was already selling is ________ and the revenue it gains on the additional units sold is ________.

• A)$9000; $9000
• B)$12 000; $12 000
• C)$3000; 4000
• D)$4000; $3000
• E)$3000; $3000

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Definitions:

Intense

Characterized by a high degree of emotional, physical, or mental effort or concentration.

Event

An occurrence or happening, especially one of significance, that can be planned or unplanned.

Equity Theory

A theory in social psychology that suggests individuals evaluate their relationships based on the balance or fairness of what they give and receive.

Procedural Fairness

Fairness that occurs when the process used to determine work outcomes is seen as reasonable.