Question 1
Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Refer to Table 13.1. If a monopoly faces the demand schedule given in the table, its marginal revenue is positive
◦ at all prices above $3.00.
◦ at all prices.
◦ at all prices below $3.00.
◦ at all price but $3.00.
Question 2
Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
◦ 2000
◦ 2400
◦ 2800
◦ 3200
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