Table 81 A Monopoly Producer of Foreign Language Translation Software Faces a |

question 132

Multiple Choice

Table 8.1
$$\begin{array} { | c | c | c | } \hline \text { Price per Unit } & \begin{array} { c } \text { Quantity Demanded } \\\text { (units) }\end{array} & \begin{array} { c } \text { Total Cost of } \\\text { Production } \\\text { (dollars) }\end{array} \\\hline \$ 85 & 10 & \$ 530 \\\hline 80 & 11 & 540 \\\hline 75 & 12 & 550 \\\hline 70 & 13 & 560 \\\hline 65 & 14 & 575 \\\hline 60 & 15 & 595 \\\hline 55 & 16 & 625 \\\hline\end{array}$$ A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 8.1.
-Refer to Table 8.1.The marginal revenue from the sale of the 12^th unit is -.

• A) $75
• B) $50
• C) $20
• D) -$5

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Marginal Cost

The financial increase incurred by adding one more unit to the production of a product or service.

Short Run

A time period in economics during which at least one input (e.g., plant size, machinery) is fixed, affecting the firm's capacity to adjust production levels.

Long Run

A period in which all factors of production and costs are variable, allowing firms and the economy to adjust to changes fully.