Asked by
Priscilla Ochonogor
on Oct 27, 2024Verified
Wendy has a monopoly in the retailing of motor homes.She can sell five per week at $21,000 each.If she wants to sell six,she can charge only $20,000 each.The quantity effect of selling the sixth motor home is:
A) $20,000.
B) $10,000.
C) $15,000.
D) $21,000.
Quantity Effect
The impact on total revenue or expenditure when the quantity sold of a good or service changes, holding its price constant.
Motor Homes
Recreational vehicles equipped with living quarters and amenities found in a home, used for traveling or camping.
Retailing
Retailing refers to the selling of goods and services directly to consumers for personal, non-business use.
- Investigate the strategies employed by monopolies to set prices and quantities that enhance profit maximization.
Verified Answer
KA
Learning Objectives
- Investigate the strategies employed by monopolies to set prices and quantities that enhance profit maximization.