Table 10.1
$$\begin{array} { c c c }
\mathrm { Q } & \mathrm { P } ( \$ ) & \mathrm { TC } ( \$ ) \
\hline 1 & 27 & 10 \
2 & 24 & 17 \
3 & 21 & 32 \
4 & 18 & 47 \
5 & 15 & 67
\end{array}$$
-Refer to Table 10.1,which shows the output,price,and total cost for a monopolistic competitor.The profit-maximizing price for the firm is _____

Question

Table 10.1
 $$\begin{array} { c c c } 
\mathrm { Q } & \mathrm { P } ( \$ ) & \mathrm { TC } ( \$ ) \
\hline 1 & 27 & 10 \
2 & 24 & 17 \
3 & 21 & 32 \
4 & 18 & 47 \
5 & 15 & 67
\end{array}$$
-Refer to Table 10.1,which shows the output,price,and total cost for a monopolistic competitor.The profit-maximizing price for the firm is _____

Quizplus · Accepted Answer

The profit-maximizing price is where marginal cost equals marginal revenue. Here, the price of $21 at quantity 3 maximizes profit, as it provides the highest difference between total revenue and total cost.

Table 101 -Refer to Table 10