cs Homework: Homework 7 CS HW Score: 87.5%, 2625 of 30 pts E Question Help Score

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cs Homework: Homework 7 CS HW Score: 87.5%, 2625 of 30 pts E Question Help Score: 0 of 1 pt 9of 19 (17 complete) End of Chapter 3.4 Related to Solved Problem 83) Ed Scahill has acquired a monopoly on the production of baseballs (don't ask how) and faces the demand and cost situation given in the following tabl Week) 15,000 20,000 25,000 30.000 35,000 40.000 Total Cost 370,000 415,000 465.000 520,000 580 000 18 16 Total Cost 330,000 370,000 415,000 465,000 520,000 580,000 Price $21 15,000 20,000 25,000 30,000 35,000 40,000 18 17 Enter your answer in the edit fields and then click Check Answer

Explanation / Answer

Total Revenue= Price * Quantity

In a monopoly market in order to sell an extra unit the seller must decrease the price of the commodity. Monopolist will increase revenue by selling one more unit of the commodity due to the reason that the percentage increase in quantity of the commodity demanded is greater than the percentage decline in price of it.

Price Quantity Total Revenue Total Cost $21 15000 21*15000=315000 330000 20 20000 20*20000=400000 370000 19 25000 19*25000=475000 415000 18 30000 18*30000=540000 465000 17 35000 17*35000=595000 520000 16 40000 16*40000=640000 580000

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