Refer to the Information Provided in Table 13 -Refer to Table 13

question 386

Multiple Choice

Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Table 13.1
$$\begin{array} { | c | c | } \hline \text { Price } ( \$ ) & \text { Quantity } \\\hline 4.00 & 2,000 \\\hline 3.50 & 2,400 \\\hline 3.00 & 2,800 \\\hline 2.50 & 3,200 \\\hline 2.00 & 3,600 \\\hline 1.50 & 4,000 \\\hline 1.00 & 4,400 \\\hline\end{array}$$
-Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what price should it charge per unit of output so as to maximize its profits?

• A) $4.00
• B) $3.50
• C) $3.00
• D) $2.50

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Definitions:

R

A programming language and free software environment used for statistical computing and graphics.

Significance

The likelihood that an observed effect or relationship in data is not due to chance, typically assessed through statistical tests.

Regression Equation

A mathematical formula that describes the relationship between two or more variables, typically identifying how one dependent variable changes as an independent variable(s) changes.

Y-intercept

The location on a graph where a line or curve intersects with the y-axis.