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:

Carbon Allowances

Permits that allow the holder to emit a certain amount of carbon dioxide or other greenhouse gases, often used in cap-and-trade systems to reduce emissions.

Cap and Trade

An environmental policy tool that sets a limit on emissions and allows businesses to buy and sell permits for a certain amount of emissions, encouraging reduction in pollution.

Sustainability Supply Chains

Supply chains designed and managed to meet current needs without compromising the ability of future generations to meet their needs, focusing on environmental, social, and economic sustainability.

Cap and Trade

An environmental policy tool that sets a limit (cap) on emissions and allows entities to buy and sell permits for emissions under that cap.