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In a small developing country, Second Chance Used Cars is a

In a small developing country, Second Chance Used Cars is a government-protected monopoly seller… Show more In a small developing country, Second Chance Used Cars is a government-protected monopoly seller of used cars. The first two columns of the table represent the yearly demand Second Chance faces for used cars. The third and fourth columns show Second Chance’s total revenue and marginal revenue associated with some of the prices it could charge for its cars. At any quantity, marginal revenue is the revenue, per car, that Second Chance receives for the last 100 cars that it sells. For example, at 200 cars, Second Chance earns $1,600,000 in revenue. By selling 300 cars, Second Chance increases its revenue by $500,000. So the marginal revenue for each of these additional 100 cars is $500,000 divided by 100, or $5,000 per car. Price Cars Demanded Total Revenue Marginal Revenue $10,000 0 $0 — $9,000 100 $900,000 $9,000 $8,000 200 $1,600,000 $7,000 $7,000 300 $2,100,000 $5,000 $6,000 400 $5,000 500 $4,000 600 $3,000 700 $2,000 800 $1,000 900 $0 1,000 3.1. What is Second Chance’s total revenue if it sets a price of $5,000 per car? • Show less

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