Refer to the Accompanying Table,which Represents the Costs and Production

question 11

Multiple Choice

Refer to the accompanying table,which represents the costs and production for a monopolist,to answer the following questions.

-When a monopolist lowers its price from $80 to $70,the quantity it is able to sell increases from 100 to 150.The change in revenue associated with the output effect is equal to

• A) $3,500.
• B) -$3,500.
• C) $500.
• D) -$500.
• E) $4,000.

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Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life.

Estimated Life

The expected period over which an asset will be utilized or useful, often used for the purpose of depreciation or amortization calculations.

Depreciable Cost

The total cost of a fixed asset that can be depreciated over its useful life, excluding salvage value.

Residual Value

The estimated salvage value or the value of an asset at the end of its useful life.