Table 15-1

A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1.
-Refer to Table 15-1.What is the firm's profit-maximizing output and what is the price charged to sell this output?
A)P = $85; Q = 10
B)P = $80; Q = 11
C)P = $70; Q = 13
D)P = $65; Q = 14

Question

Table 15-1
  
A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 15-1.
-Refer to Table 15-1.What is the firm's profit-maximizing output and what is the price charged to sell this output?
A)P = $85; Q = 10 
B)P = $80; Q = 11 
C)P = $70; Q = 13 
D)P = $65; Q = 14

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. Assuming Table 15-1 provides this information, choice C likely represents the point where these two values are equal, leading to the price of $70 and quantity of 13.

Table 15-1 a Monopoly Producer of Foreign Language Translation Software Faces a Language