A monopolist has a constant marginal cost of production, and a total revenue function given by the following table.

It finally chooses a price of $15. Evaluate whether the following statements are TRUE of FALSE. (I) The marginal cost might have been $8.5. (II) The marginal cost might have been $10.5.

Question

A monopolist has a constant marginal cost of production, and a total revenue function given by the following table.

It finally chooses a price of $15. Evaluate whether the following statements are TRUE of FALSE. (I) 	 The marginal cost might have been $8.5.  (II) 	 The marginal cost might have been $10.5.

Accepted Answer

Statement (I) is false; statement (II) is true.

Answer

Statement (I) is true; statement (II) is false.

Answer

Statement (I) is false; statement (II) is false.

Answer

Statement (I) is true; statement (II) is true.

Price ($)	Total Revenue ($)
18	36
17	51
16	64
15	75
14	84
13	91

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A monopolist has a constant marginal cost of production, and a total revenue fun...

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