-The Above Figure Shows the Market Demand Curve for Long-Distance

question 218

Multiple Choice

-The above figure shows the market demand curve for long-distance land-based telephone calls.Suppose the marginal cost of a long-distance telephone call is 2¢ a minute for a call no matter how many minutes of calls are made and there are 3 firms in the industry.If the firms in the industry operate as a monopoly,there are ________ minutes of calls made per hour.

• A) between 0 and 3 million
• B) more than 3 million and less than or equal to 5 million
• C) more than 5 million and less than or equal to 7 million
• D) more than 7 million and less than or equal to 9 million
• E) more than 9 million

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Definitions:

Number Expressed

A specific value presented in numerical form.

Thousandths

A decimal place three places to the right of the decimal point, representing parts of a thousand.

Number Expressed

A way of representing a quantity or value in terms of digits or symbols.

Thousandths

A fractional part in a series, representing one part out of a thousand.