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1. Refer to the following table with demand and cost schedule for a monopoly: Pr

ID: 1092440 • Letter: 1

Question

1.

Refer to the following table with demand and cost schedule for a monopoly:          

Price ($)

Q

TC ($)

20

4

75

19

5

88

18

6

103

17

7

120

16

8

139

15

9

159



        The marginal revenue (MR) for the 9th unit of output (Q) is

$10

$9

$8

$7

2. Refer to the following table with demand and cost schedule for a monopoly:          

Price ($)

Q

TC ($)

20

4

75

19

5

88

18

6

103

17

7

120

16

8

139

15

9

159


        For profit maximization, what price should the monopoly charge?

$19

$18

$17

$16

3. Suppose that Intel and AMD are the only sellers of computer CPU in the United States. They are deciding how much to charge for similar products. The two choices are

Price ($)

Q

TC ($)

20

4

75

19

5

88

18

6

103

17

7

120

16

8

139

15

9

159

Explanation / Answer

1) 7

2) 18

3) (Intel-High, AMD-High)

4) 1