The Following Table Depicts the Cost and Demand Structure a Natural

question 43

Multiple Choice

The following table depicts the cost and demand structure a natural monopoly faces.Provided that the firm operates as a monopolist,what is the price charged and quantity produced in order to maximize profits? $$\begin{array} { c c c c c c } \text { Quantity } & \text { Price (\$) } & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} \\\hline 0 & 1,000 & 0 & 0 & 0 & 0 \\1 & 900 & 900 & 900 & 800 & 800 \\2 & 800 & 1,600 & 700 & 1,400 & 600 \\3 & 700 & 2,100 & 500 & 1,900 & 500 \\4 & 600 & 2,400 & 300 & 2,400 & 500 \\5 & 500 & 2,500 & 100 & 2,800 & 400 \\6 & 400 & 2,400 & 100 & 3,200 & 400\end{array}$$

• A)price charged of $900 and quantity produced of 1
• B)price charged of $800 and quantity produced of 2
• C)price charged of $700 and quantity produced of 3
• D)price charged of $600 and quantity produced of 4

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Definitions:

Framingham Heart Study

A long-term, ongoing cardiovascular cohort study of residents of the city of Framingham, Massachusetts, that seeks to identify common factors or characteristics that contribute to cardiovascular disease.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease and stroke.

Cardiovascular Disease

Refers to a class of diseases that involve the heart or blood vessels, such as coronary artery disease and stroke.

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