Exhibit 9-5 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 9-5. 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

Economics

You might also like to view...

What are the factors that can shift the supply of financial capital to a certain investment?

a. if people do not want to alter their existing levels of risk b. if the riskiness or return on one investment is the same as other investments c. if the riskiness or return on one investment changes relative to other investments d. if people do not want to alter their existing levels of consumption

Economics

When two goods are perfect complements, the indifference curve is

a. a horizontal straight line. b. bowed outward. c. a downward-sloping straight line. d. a right angle.

Economics

A decrease in consumer confidence will cause a:

A. shift in aggregate demand to the right. B. movement downward along the aggregate demand curve. C. shift in aggregate demand to the left. D. movement upward along the aggregate demand curve.

Economics

Elasticity is

A. a measure of how much buyers and sellers respond to changes in market conditions. B. the study of how the allocation of resources affects economic well-being. C. the maximum amount that a buyer will pay for a good. D. the value of everything a seller must give up to produce a good.

Economics