Table 82 The Government of a Small Developing Country Has Granted Exclusive

question 166

Multiple Choice

Table 8.2
$$\begin{array} { | c | c | c | } \hline \text { Quantity per } & \text { Price per } & \text { Total Cost } \\\text { Day (cases) } & \text { Case } \\\hline 1 &\$16& \$ 7.00 \\\hline 2 & 15 & 9.50 \\\hline 3 & 14 & 11.00 \\\hline 4 & 13 & 12.00 \\\hline 5 & 12 & 14.50 \\\hline 6 & 11 & 17.50 \\\hline 7 & 10 & 21.00 \\\hline 8 & 9 & 25.00 \\\hline 9 & 8 & 30.00 \\\hline 10 & 7 & 35.50 \\\hline\end{array}$$ The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. Table 8.2 shows the cost and demand data for this government-protected monopolist.
-Refer to Table 8.2.What is the profit-maximising quantity and price for the monopolist?

• A) Quantity = 8 cases, Price = $9
• B) Quantity = 7 cases, Price = $10
• C) Quantity = 9 cases, Price = $8
• D) Quantity = 10 cases, Price = $7

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Definitions:

New Classical Economists

Economists who believe in the theory that markets are always clear and that participants have rational expectations, focusing on the supply side for economic growth.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, and taxes.

Supply-Siders

are economists who believe that changes in marginal tax rates and the ability to supply goods in the economy significantly influence economic growth.

Work More

The concept or action of increasing the amount of effort or hours spent on labor or tasks.