The data below relate to a monopolist and the product it produces. If the firm wants to maximize profit, what output and price will it choose? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59   Question 1 options:   a)  Q=4 : P=$14   b)  Q=5 : P=$12   c)  Q=2 : P=$18   d)  Q=3 : P=$15.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The data below relate to a monopolist and the product it produces. If the firm wants to maximize profit, what output and price will it choose?

Quantity Price per Unit Total Cost
0 $22 $20
1 $20 $24
2 $18 $27
3 $15 $32
4 $14 $40
5 $12 $49
6 $10 $59
 

Question 1 options:

 

a) 

Q=4 : P=$14
 

b) 

Q=5 : P=$12
 

c) 

Q=2 : P=$18
 

d) 

Q=3 : P=$15.
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