Table 8.2
$$\begin{array} { | c | c | c | }
\hline \text { Quantity per } & \text { Price per } & \text { Total Cost } \
\text { Day (cases) } & \text { Case } \
\hline 1 &\$16& \$ 7.00 \
\hline 2 & 15 & 9.50 \
\hline 3 & 14 & 11.00 \
\hline 4 & 13 & 12.00 \
\hline 5 & 12 & 14.50 \
\hline 6 & 11 & 17.50 \
\hline 7 & 10 & 21.00 \
\hline 8 & 9 & 25.00 \
\hline 9 & 8 & 30.00 \
\hline 10 & 7 & 35.50 \
\hline
\end{array}$$ The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. Table 8.2 shows the cost and demand data for this government-protected monopolist.
-Refer to Table 8.2.What is the profit-maximising quantity and price for the monopolist?

Question

Table 8.2
 $$\begin{array} { | c | c | c | } 
\hline \text { Quantity per } & \text { Price per } & \text { Total Cost } \
\text { Day (cases) } & \text { Case } \
\hline 1 &\$16& \$ 7.00 \
\hline 2 & 15 & 9.50 \
\hline 3 & 14 & 11.00 \
\hline 4 & 13 & 12.00 \
\hline 5 & 12 & 14.50 \
\hline 6 & 11 & 17.50 \
\hline 7 & 10 & 21.00 \
\hline 8 & 9 & 25.00 \
\hline 9 & 8 & 30.00 \
\hline 10 & 7 & 35.50 \
\hline
\end{array}$$ The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. Table 8.2 shows the cost and demand data for this government-protected monopolist.
-Refer to Table 8.2.What is the profit-maximising quantity and price for the monopolist?

Quizplus · Accepted Answer

The profit-maximizing quantity and price occur where marginal cost equals marginal revenue. At 7 cases, the price is $10, and the total cost is $21.00, which maximizes profit.

Table 82 The Government of a Small Developing Country Has Granted Exclusive