Table 9.7
$$\begin{array} { | c | c | c | }
\hline \text { Quantity } & \text { Price } ( \$ ) & \text { Total Cost } ( \$ ) \
\hline 1 & 36 & 20 \
\hline 2 & 32 & 32 \
\hline 3 & 28 & 50 \
\hline 4 & 24 & 80 \
\hline 5 & 20 & 120 \
\hline
\end{array}$$
-Refer to Table 9.7,which shows the price and output combinations at different output levels for a non-price discriminating monopolist.The profit-maximizing output for this monopolist is _____
A)1 unit.
B)2 units.
C)3 units.
D)4 units.
E)5 units.

Question

Table 9.7
 $$\begin{array} { | c | c | c | } 
\hline \text { Quantity } & \text { Price } ( \$ ) & \text { Total Cost } ( \$ ) \
\hline 1 & 36 & 20 \
\hline 2 & 32 & 32 \
\hline 3 & 28 & 50 \
\hline 4 & 24 & 80 \
\hline 5 & 20 & 120 \
\hline
\end{array}$$
-Refer to Table 9.7,which shows the price and output combinations at different output levels for a non-price discriminating monopolist.The profit-maximizing output for this monopolist is _____
A)1 unit.
B)2 units.
C)3 units.
D)4 units.
E)5 units.

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. Calculating marginal revenue and marginal cost for each unit, the profit is maximized at 3 units where the difference between total revenue and total cost is greatest.

Table 97 -Refer to Table 9