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25 July, 21:12

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.

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  1. 25 July, 23:38
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    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.
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