Table 15-1

A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1.
-Refer to Table 15-1.When producing the profit-maximizing output, what is the amount of the firm's profit?
A)$335
B)$350
C)$880
D)$910

Question

Table 15-1
  
A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1.
-Refer to Table 15-1.When producing the profit-maximizing output, what is the amount of the firm's profit?
A)$335 
B)$350 
C)$880 
D)$910

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. Based on the table, calculate total revenue minus total cost at this output level to find the profit, which is $350.

Table 15-1 a Monopoly Producer of Foreign Language Translation Software Faces a Language