C M Chain Was to Manufacture 1,000 Chain Saws Next Month

question 68

Multiple Choice

C. M. Chain was to manufacture 1,000 chain saws next month. Its accountant has provided the following analysis of the total manufacturing costs. r² = 0.71
What is the estimated cost of producing the 1,000 chain saws?

• A) $400,200
• B) $284,142
• C) $200,400
• D) $18,000
• E) $9,000

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Definitions:

Non-discriminating Monopolist

A monopolist that charges all consumers the same price for its product.

Marginal Revenue

The added income resulted from the transaction of an additional unit of a product or service.

Monopolist

A single seller in a market with no close substitutes for the product or service, allowing for control over prices.

Non-discriminating Monopolist

A monopolist who charges a single price for its product to all consumers, regardless of market segment differences.