Table 10.2 Eco Energy is a monopolistically competitive producer of a sports beverage called Power On.Table 10.2 shows the firm's demand and cost schedules.
-Refer to Table 10.2.What is the output (Q)that maximises profit, and what is the price (P)charged?
A)P = $55; Q = 5 cases
B)P = $50; Q = 6 cases
C)P = $45; Q = 7 cases
D)P = $40; Q = 8 cases

Question

Table 10.2  Eco Energy is a monopolistically competitive producer of a sports beverage called Power On.Table 10.2 shows the firm's demand and cost schedules.
-Refer to Table 10.2.What is the output (Q)that maximises profit, and what is the price (P)charged?
A)P = $55; Q = 5 cases 
B)P = $50; Q = 6 cases 
C)P = $45; Q = 7 cases 
D)P = $40; Q = 8 cases

Quizplus · Accepted Answer

Without access to Table 10.2, the correct answer cannot be determined. However, the choice provided as correct (B) suggests that at a price of $50 for 6 cases, profit is maximized according to the data in the referenced table.

Table 102 Eco Energy Is a Monopolistically Competitive Producer of of a Sports