Table 15-1 -Refer to Table 15-1

question 22

Multiple Choice

Table 15-1 $$\begin{array} { | c | c | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Price } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Average } \\\text { Revenue } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue } \\\text { (Dinar) }\end{array} \\\hline 1 & 35 & 35 & & \\\hline 2 & & 64 & 32 & 29 \\\hline 3 & 29 & & & \\\hline 4 & & & & 17 \\\hline 5 & 23 & & & 11\\\hline 6 & & 120 & & \\\hline 7 & 17 & & & - 1 \\\hline 8 & & & & - 7 \\\hline 9 & & 99 & 11 & - 13\\\hline 10 & & 80 & 8& \\\hline\end{array}$$
-Refer to Table 15-1.Assume this monopolist's marginal cost is constant at 12 dinar.What quantity of output (Q) will it produce and what price (P) will it charge?

• A)Q = 4,P = 29
• B)Q = 4,P = 26
• C)Q = 5,P = 23
• D)Q = 7,P = 17

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Definitions:

Risky Asset

An asset whose returns can vary considerably and are not predictable, presenting a higher chance of loss.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.

Beta

A measure of a stock's volatility in relation to the stock market as a whole, indicating the risk associated with investing in a particular stock.

CAPM

The Capital Asset Pricing Model, a formula that describes the relationship between systematic risk and expected return for assets, particularly stocks.