Exhibit 8-5 Demand and cost data for a monopolist
Price
Quantity
TR
MR
TC
Profit
$10
1
10
10
4
9
2
8
8
3
12
7
4
16
6
5
20
5
6
24
4
7
28
3
8
32
2
9
36
1
10
40
Refer to Exhibit 8-5. The demand schedule and cost schedule for a monopolist are provided. Which output level maximizes profit?
A. 2.
B. 6.
C. 4.
D. 7.
Answer: C
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