Table 93 Table 93 Shows the Demand and Cost Schedules for a Monopolistically

question 63

Multiple Choice

Table 9.3
$$\begin{array} { | c | c | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Price } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (dollars) }\end{array} \\\hline 0 & 21 & 0 & 0 & 50 \\\hline 1 & 20 & 20 & 16 & 66 \\\hline 2 & 19 & 38 & 31 & 81 \\\hline 3 & 18 & 54 & 45 & 95 \\\hline 4 & 17 & 68 & 59 & 109 \\\hline 5 & 16 & 80 & 75 & 125 \\\hline 6 & 15 & 90 & 93 & 143 \\\hline 7 & 14 & 98 & 112 & 162 \\\hline 8 & 13 & 104 & 140 & 190 \\\hline 9 & 12 & 108 & 180 & 230 \\\hline 10 & 11 & 110 & 230 & 280 \\\hline\end{array}$$ Table 9.3 shows the demand and cost schedules for a monopolistically competitive firm.
-Refer to Table 9.3.What is the best course of action for the firm in the short run?

• A) It should shut down.
• B) It should stay in business because it covers some of its fixed cost.
• C) It should increase its sales by lowering its price.
• D) It should not cut its price, but it should increase its sales by advertising.

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Definitions:

Direct and Indirect

Refers to methods of communication or influence, with direct being straightforward and to the point, while indirect is more subtle or not explicit.

Informed and Curious

A state of being knowledgeable on a subject while maintaining a desire to learn more and understand deeper.

Immigration Waves

Periods when large numbers of people migrate from one country to another, which can have significant cultural, economic, and social effects on the sending and receiving countries.

Dominant Culture

The prevailing cultural norms, values, and practices of the majority group within a society that influence its social institutions and power structures.