Answer the Question on the Basis of the Following Domestic

question 4

Multiple Choice

Answer the question on the basis of the following domestic supply and demand schedules for a product.Suppose that the world price of the product is $1. $\begin{array} { c c c } \begin{array} { c } \text { Quantity } \\\text { Supplied } \\\text { (Domestic) }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded } \\\text { (Domestic) }\end{array} \\12 & \$ 5 & 2 \\10 & 4 & 4 \\7 & 3 & 7 \\4 & 2 & 11 \\1 & 1 & 16\end{array}$ Refer to the given data.The total amount of revenue collected from a $1-per-unit tariff on this product will be:

• A) $22.
• B) $8.
• C) $7.
• D) $14.

Understand the characteristics and outcomes of monopolistic markets versus perfect competition.

Analyze the economic impacts of monopolies on prices and output levels.

Identify barriers to entry in monopolistic markets.

Understand the role of government and regulations in monopolies.

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Definitions:

Insurance

Protection against financial loss from specific risks, such as accident, theft, or illness, through the transfer of risk to an insurer for a premium.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer gives a product as part of the payment for a new product.

Book Value

The net value of a company's assets as recorded on its financial statements, minus its liabilities and intangible assets.

Recorded

The process of entering financial transactions into accounting records.