The Following Are Demand and Cost Data for a Monopolist

question 25

Multiple Choice

The following are demand and cost data for a monopolist:

$\begin{array} { | c | c | c | c | } \hline &{ \text { Demand Data } } & { \text { Cost Data } } \\\hline \text { Price } & \text { Quantity Demanded } & \text { Output } & \text { Total Cost } \\\hline \$ 5.50 & 3 & 3 & \$ 5.00 \\\hline 5.00 & 4 & 4 & 6.00 \\\hline 4.50 & 5 & 5 & 6.50 \\\hline 3.85 & 6 & 6 & 7.50 \\\hline 3.35 & 7 & 7 & 9.00 \\\hline 2.90 & 8 & 8 & 11.00 \\\hline 2.50 & 9 & 9 & 14.00 \\\hline\end{array}$
-Equilibrium price for the monopolist will be:

• A)$5.00
• B)$2.90
• C)$3.35
• D)$4.50
• E)$3.85

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Definitions:

Minor Axis

The shortest diameter of an ellipse, which passes through its center and is perpendicular to the major axis.

Function

A connection between a collection of inputs and a group of allowable outputs where each input is tied to only one output.

Graph

A diagram showing the relation between variable quantities, typically of two variables measured along a pair of axes at right angles.

Function

An association involving a series of inputs and an approved set of outputs, where every input corresponds to a singular output.