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 must charge $20,000 each. The quantity effect of selling the sixth motor home is:Choose one answer.

a. $21,000.

b. $15,000.

c. $10,000.

d. $20,000.

Question

Sebastian

Business

4 April, 07:28

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 must charge $20,000 each. The quantity effect of selling the sixth motor home is:Choose one answer.

a. $21,000.

b. $15,000.

c. $10,000.

d. $20,000.

+5

Answers (1)

Know the Answer?

Howe · Answer 1

The correct option is option d, $20,000.

Explanation:

As she has to sell all the six, she has to charge each house for $20,000. This indicates that the quantity effect of selling the sixth motor home is given as

the cost of the sixth house which is $20,000 so the correct answer is $20,000.

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 must charge $20,000 each. The quantity effect of selling the sixth motor home is:Choose one answer.a. $21,000.b. $15,000.c. $10,000.d. $20,000.

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 must charge $20,000 each. The quantity effect of selling the sixth motor home is:Choose one answer.

a. $21,000.

b. $15,000.

c. $10,000.

d. $20,000.