-The table above shows the demand and costs for a single- price monopolist. The firm can maximise its profit by selling
A) 60 units.
B) 40 units.
C) 20 units.
D) 0 units.

Question

-The table above shows the demand and costs for a single- price monopolist. The firm can maximise its profit by selling
A) 60 units. 
B) 40 units. 
C) 20 units. 
D) 0 units.

Quizplus · Accepted Answer

To maximize profit, a monopolist will produce at the quantity where marginal revenue (MR) equals marginal cost (MC). Without specific numbers from a table, we typically assume the choice that represents a positive quantity less than the maximum possible, as monopolists rarely produce at the extremes of their capacity due to diminishing returns and the desire to maximize profit margins. Therefore, among the given options, selling 60 units is a plausible choice for maximizing profit, assuming it aligns with the MR=MC rule.

-The Table Above Shows the Demand and Costs for a Single-