Table 9.1 A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 9.1.
-Refer to Table 9.1.What is the firm's profit-maximising output and what is the price charged to sell this output?

Question

Table 9.1  A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 9.1.
-Refer to Table 9.1.What is the firm's profit-maximising output and what is the price charged to sell this output?

Quizplus · Accepted Answer

To determine the profit-maximizing output and price, one typically looks for the output level where marginal cost (MC) equals marginal revenue (MR), assuming the table provided such data. Without the specific table (Table 9.1), we can't analyze the exact figures, but the principle is that the firm will choose the output level where MR=MC and then use the demand curve to find the price that consumers are willing to pay for that quantity, which is typically represented by the choice that aligns with this principle.

Table 91 a Monopoly Producer of Foreign Language Translation Software