Table 15-11
The following table shows quantity, price, and marginal cost information for a monopoly:
-Refer to Table 15-11. What level of output should the firm produce to maximize its profit?
A)2 units
B)3 units
C)4 units
D)5 units

Question

Table 15-11
The following table shows quantity, price, and marginal cost information for a monopoly: 
-Refer to Table 15-11. What level of output should the firm produce to maximize its profit?
A)2 units 
B)3 units 
C)4 units 
D)5 units

Quizplus · Accepted Answer

The firm should produce 3 units to maximize its profit. At this level of output, the firm's total revenue is $30 and its total cost is $21, resulting in a profit of $9.

Table 15-11 The Following Table Shows Quantity, Price, and Marginal Cost Information