Demand and Cost Data for Sylvie's Shampoo Company Table 26.2
A Monopolistically Competitive Firm
$$\begin{array} { | r | r | r | r | }
\hline { \text { Price } } &{ \begin{array} { c }
\text { Demand Data } \
\text { Quartity }
\end{array} } & \text { Cost Data Output } & { \text { Total Cost } } \
\hline \$ 22 & 6 & 6 & \$ 96 \
\hline \$ 20 & 7 & 7 & \$ 104 \
\hline \$ 18 & 8 & 8 & \$ 114 \
\hline \$ 16 & 9& 9 & \$ 126 \
\hline \$ 14 & 10 & 10 & \$ 140 \
\hline
\end{array}$$ Refer to Table 26.2.At the profit-maximizing output and price,Sylvie's Shampoo Company will earn a profit equal to
A)$36.
B)$30.
C)$140.
D)$144.

Question

Demand and Cost Data for Sylvie's Shampoo Company Table 26.2
A Monopolistically Competitive Firm
$$\begin{array} { | r | r | r | r | } 
\hline { \text { Price } } &{ \begin{array} { c } 
\text { Demand Data } \
\text { Quartity }
\end{array} } & \text { Cost Data Output } & { \text { Total Cost } } \
\hline \$ 22 & 6 & 6 & \$ 96 \
\hline \$ 20 & 7 & 7 & \$ 104 \
\hline \$ 18 & 8 & 8 & \$ 114 \
\hline \$ 16 & 9& 9 & \$ 126 \
\hline \$ 14 & 10 & 10 & \$ 140 \
\hline
\end{array}$$ Refer to Table 26.2.At the profit-maximizing output and price,Sylvie's Shampoo Company will earn a profit equal to
A)$36.
B)$30.
C)$140.
D)$144.

Quizplus · Accepted Answer

Sylvie's Shampoo Company will earn a profit equal to $36 at the profit-maximizing output and price. This is because the total revenue at the profit-maximizing output and price is $144, and the total cost at the profit-maximizing output and price is $108.