Attempt $2$

Oligopoly $-$ End of Chapter Problem

The table shows the demand schedule for vitamin D$.$ Suppose that the marginal cost of producing vitamin D is zero.

a$.$ Assume that BASF is the only producer of vitamin D and acts as a monopolist. It currently produces $40$ tons of vitamin D at $$4$ per ton. If BASF were to produce $10$ more tons, what would be the price effect for BASF? What would be the quantity effect? Would BASF have an incentive to produce those $10$ additional tons?

$\backslash$table$[[\backslash$table$[[$Price of vitamin D$],[($per ton$)]],\backslash$table$[[$Quantity of vitamin D$],[$demanded $($tons$)]]],[$$$8,0],[7,10],[6,20],[5,30],[4,40],[3,50],[2,60],[1,70]]$

Price effect: $

Quantity effect: $ $$

Incorrect Answer

Correct Answer

BASF an incentive to expand its output.

Correct Answer