Use the following to answer question:
-(Table: Prices and Demand)Use Table: Prices and Demand.The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.The Saints should produce _____ hats and charge _____ to maximize its profits.
A)1;$28
B)2;$26
C)3;$24
D)4;$22

Question

Use the following to answer question: 
-(Table: Prices and Demand)Use Table: Prices and Demand.The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.The Saints should produce _____ hats and charge _____ to maximize its profits.
A)1;$28 
B)2;$26 
C)3;$24 
D)4;$22

Quizplus · Accepted Answer

To maximize profits, a monopolist produces where marginal revenue (MR) equals marginal cost (MC). Without the table, we can't directly see the MR, but we know the MC is $18. The choice that suggests producing 3 hats at $24 likely aligns with the point where MR = MC, maximizing profits.

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