Table 15-12
The following table provides information on the price, quantity, and average total cost for a monopoly.
-Refer to Table 15-12. In order to maximize profits, the firm should produce
A)4 units of output.
B)8 units of output.
C)12 units of output.
D)16 units of output.

Question

Table 15-12
The following table provides information on the price, quantity, and average total cost for a monopoly. 
-Refer to Table 15-12. In order to maximize profits, the firm should produce
A)4 units of output. 
B)8 units of output. 
C)12 units of output. 
D)16 units of output.

Quizplus · Accepted Answer

To maximize profits, a firm should produce where marginal cost equals marginal revenue. Without the table, we assume 8 units is the optimal point based on typical economic principles.

Table 15-12 the Following Table Provides Information on the Price, Quantity, and Quantity