Asked by
Verified
(Table: Prices and Demand) The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5,their total revenue changes from _____ to _____.
A) $88;$100
B) $22;$20
C) $88;$80
D) $110;$100
Total Revenue
The total amount of money a firm receives from the sale of its goods and services, calculated as the price per unit times the number of units sold.
Marginal Cost
The cost of producing one additional unit of a good or service, representing the increase in total cost from an increase in production by one unit.
Hats
Headwear pieces, varying in style and function, often used for fashion, protection, or ceremonial purposes.
- Pinpoint and quantify the marginal cost, marginal revenue, quantity effect, and price effect in settings of a monopoly.
Verified Answer
Learning Objectives
- Pinpoint and quantify the marginal cost, marginal revenue, quantity effect, and price effect in settings of a monopoly.
Related questions
(Table: Demand for Lenny's Coffee)Use Table: Demand for Lenny's Coffee ...
(Table: Prices and Demand)The New Orleans Saints Have a Monopoly ...
(Table: Demand for Lenny's Coffee)Use Table: Demand for Lenny's Coffee ...
Suppose a Monopolist Reduces Its Price in an Effort to ...
(Figure: the Profit-Maximizing Output and Price)Use Figure: the Profit-Maximizing Output ...