Table 8.1
$$\begin{array} { | c | c | c | }
\hline \text { Price per Unit } & \begin{array} { c }
\text { Quantity Demanded } \
\text { (units) }
\end{array} & \begin{array} { c }
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 85 & 10 & \$ 530 \
\hline 80 & 11 & 540 \
\hline 75 & 12 & 550 \
\hline 70 & 13 & 560 \
\hline 65 & 14 & 575 \
\hline 60 & 15 & 595 \
\hline 55 & 16 & 625 \
\hline
\end{array}$$ A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 8.1.
-Refer to Table 8.1.What is the firm's profit-maximising output and what is the price charged to sell this output?

Question

Table 8.1
 $$\begin{array} { | c | c | c | } 
\hline \text { Price per Unit } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (units) }
\end{array} & \begin{array} { c } 
\text { Total Cost of } \
\text { Production } \
\text { (dollars) }
\end{array} \
\hline \$ 85 & 10 & \$ 530 \
\hline 80 & 11 & 540 \
\hline 75 & 12 & 550 \
\hline 70 & 13 & 560 \
\hline 65 & 14 & 575 \
\hline 60 & 15 & 595 \
\hline 55 & 16 & 625 \
\hline
\end{array}$$ A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 8.1.
-Refer to Table 8.1.What is the firm's profit-maximising output and what is the price charged to sell this output?

Quizplus · Accepted Answer

The profit-maximizing output is where marginal cost equals marginal revenue. Here, at Q = 13, the price is $70, and the cost is $560, leading to the highest profit.

Table 81 A Monopoly Producer of Foreign Language Translation Software Faces a |