$\begin{array}{lll}
\text { Quantity } &\text {Price } &\text { Total cost }\
\hline1 & \$ 500 & \$ 400 \
2 & 450 & 650 \
3 & 400 & 950 \
4 & 350 & 1,300 \
5 & 300 & 1,700
\end{array}$
Table 24.1
Hypothetical Monopoly Costs and Revenue In Table 24.1, the maximum profit that can be achieved is
A) -$200.
B) $100.
C) $250.
D) $500.

Question

Quizplus · Accepted Answer

The maximum profit is calculated by subtracting total cost from total revenue. At quantity 3, total revenue is $1,200 (3 units x $400) and total cost is $950, resulting in a profit of $250.

Table 241 Hypothetical Monopoly Costs and Revenue in Table 24

Table 241
Hypothetical Monopoly Costs and Revenue in Table 24