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789948-dt-content-rid-768 M1 ECON2302010 s AR MRQ Quantity ifit wants to sell qu

ID: 1162977 • Letter: 7

Question

789948-dt-content-rid-768 M1 ECON2302010 s AR MRQ Quantity ifit wants to sell quantity Q1.«must charge.pnce: 6) Q)P1 D) not labeled on the graph. 7) A monopolist can sell 20 teys per day for $8 each. To sell 21 toys per day, the price must be cut to $7. The marginal revenue ofthe 21st toy is 7) A)-$13. 8)-$10. C) $7, D).$21 8) For a monopolist to sell an output level of 10 units, the price must be $8. MR at this output level will be 8) 9) The data below relate to a pure monopolist and the product it produces. Whet is the profit-maximizing output and price for this monopolist? 9)

Explanation / Answer

6. Option C, It is the price where quantity touches AR curve

7. Option A.

Q

P

TR

MR

20

8

160

21

7

147

-13

8. Option D

9. Option D

P

Q

TC

TR

Profit

22

0

20

0

-20

20

1

24

20

-4

18

2

27

36

9

16

3

32

48

16

14

4

40

56

16

12

5

49

60

11

10

6

59

60

1

Q

P

TR

MR

20

8

160

21

7

147

-13

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