When a monopolist lowers its price from $40 to $30, the quantity it is able to sell increases from 150 to 300. The change in total revenue is equal to ________.

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BlackTom AI · Accepted Answer

Question restatement: A monopolist lowers price from 40 to 30, and quantity sold rises from 150 to 300. We are asked for the change in total revenue (TR).

Step 1: Calculate initial total revenue. With price P1 = 40 and quantity Q1 = 150, TR1 = P1 × Q1 = 40 × 150 = 6,000.

Step 2: Calculate final total revenue. After the price drop, P2 = 30 and Q2 = 300, so TR2 = P2 × Q2 = 30 × 300 = 9,000.

Step 3: Determine the change in total revenue. Change in TR = TR2 − TR1 = 9,000 − 6,000 = 3,000.

Step 4: Interpret the result. The computed change in total revenue is 3,000 dollars. The provided answer option aligns with this numeric value, indicating consistency with the calculation. If options were shown, this would correspond to the choice stating a $3,000 change in total revenue.

MCD2020 - T1 - 2025 Homework Quiz 8 - Reopened

When a monopolist lowers its price from $40 to $30, the quantity it is able to sell increases from 150 to 300. The change in total revenue is equal to ________.

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MCD2020 - T1 - 2025 Homework Quiz 8 - Reopened

When a monopolist lowers its price from $40 to $30, the quantity it is able to sell increases from 150 to 300. The change in total revenue is equal to ________.

View Explanation

Log in for full answers

Similar Questions

When a perfectly competitive firm sells additional units of output, its total revenue will

A firm has a demand curve of 𝑄 = 25 − 0.5 𝑃 . Which of the following is the correct revenue curve for this firm? Note that the horizontal axis on each graph is quantity and the vertical axis is revenue.

Figure 14-2Suppose a firm operating in a competitive market has the following cost curves:​Refer to Figure 14-2. If the market price is $10, what is the firm's total revenue?

Scenario 15-1A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $40, its average revenue is $80, and its average total cost is $44.Refer to Scenario 15-1. At Q = 500, the firm's total revenue is

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Figure 5-7Refer to Figure 5-7. If, holding the supply curve fixed, there were an increase in demand that caused the equilibrium price to increase from $6 to $7, then sellers' total revenue would

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More Practical Tools for Students Powered by AI Study Helper

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