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13 Jan 2019
The following table shows the maximum amount five potential car buyers are willing to pay for each level of sales. Suppose that the cars are being sold by a car dealer operating as a monopoly (perhaps because there are no other car dealers in the market).
Maximum Amount He or She Would Pay for the Car
Buyer 1
$40,000
Buyer 2
$35,000
Buyer 3
$30,000
Buyer 4
$25,000
Buyer 5
$20,000
a) If the price of the car is $30,000, the revenue will be $............thousand.
b) If the marginal cost of each car is $20,000. The monopolistic car dealer will want to sell 3 cars and the price will be $................. thousand.
c) In a perfectly competitive market, the number of cars sold would be 5 cars.
The following table shows the maximum amount five potential car buyers are willing to pay for each level of sales. Suppose that the cars are being sold by a car dealer operating as a monopoly (perhaps because there are no other car dealers in the market).
| Maximum Amount He or She Would Pay for the Car | |
| Buyer 1 | $40,000 |
| Buyer 2 | $35,000 |
| Buyer 3 | $30,000 |
| Buyer 4 | $25,000 |
| Buyer 5 | $20,000 |
a) If the price of the car is $30,000, the revenue will be $............thousand.
b) If the marginal cost of each car is $20,000. The monopolistic car dealer will want to sell 3 cars and the price will be $................. thousand.
c) In a perfectly competitive market, the number of cars sold would be 5 cars.
Irving HeathcoteLv2
13 Jan 2019
