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Question
Refer to the accompanying table, which represents the costs and production for a monopolist, to answer the following questions.
| Price | Quantity | Fixed Cost | Variable Cost |
| $15 | 0 | $5 | $0 |
| $13 | 1 | $5 | $4 |
| $11 | 2 | $5 | $9 |
| $9 | 3 | $5 | $14 |
| $7 | 4 | $5 | $20 |
| $5 | 5 | $5 | $29 |
When a monopolist lowers its price from $80 to $70, the quantity it is able to sell increases from 100 to 150. The change in revenue associated with the output effect is equal to
a. $3,500.
b. -$3,500.
c. $500.
d. -$500.
e. $4,000.
Answer
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