The Table Given Below Shows the Price, Marginal Revenue and Marginal

question 57

Multiple Choice

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Price discrimination is best described as a monopolist:

• A)selling a product at the fixed market determined price.
• B)charging buyers an excessive price for the product.
• C)charging different customers different prices when the costs are equal.
• D)selling a product for different prices during two different periods of time.
• E)charging same prices to different customers when the costs are different.

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Definitions:

Depreciation Expense

Distributing the expense of a physical asset throughout its serviceable duration.

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life, after deducting the cost of disposal.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate.

Depreciation Expense

It refers to the allocation of the cost of a tangible asset over its useful life.