Table 17-10
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.

-Refer to Table 17-10.If the market for gasoline in Driveaway is a monopoly,then the profit-maximizing monopolist will charge a price of

Question

Table 17-10
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
 
-Refer to Table 17-10.If the market for gasoline in Driveaway is a monopoly,then the profit-maximizing monopolist will charge a price of

Quizplus · Accepted Answer

In a monopoly, the profit-maximizing quantity is where marginal cost equals marginal revenue. The monopolist will then charge the highest price consumers are willing to pay for that quantity, which is $5 for 150 gallons.

Table 17-10 the Table Shows the Town of Driveaway's Demand Schedule for Schedule