Narrbegin Exhibit 8.5 Demand and cost data for a monopolist
$\begin{array}{|c|c|c|c|c|c|}
\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \mathrm{TC} & \text { Profi } \
\hline \$ 10 & 1 & 10 & 10 & 4 & \
\hline 9 & 2 & & & 8 & \
\hline 8 & 3 & & & 12 & \
\hline 7 & 4 & & & 16 & \
\hline 6 & 5 & & & 20 & \
\hline 5 & 6 & & & 24 & \
\hline 4 & 7 & & & 28 & \
\hline 3 & 8 & & & 32 & \
\hline 2 & 9 & & & 36 & \
\hline 1 & 10 & & & 40 & \
\hline
\end{array}$
-By calculating the data provided in Exhibit 8.5, how much is the profit if the firm decides to produce 7 units?
A) zero.
B) 6.
C) 12.
D) 16.

Question

Narrbegin Exhibit 8.5 Demand and cost data for a monopolist
 $\begin{array}{|c|c|c|c|c|c|}
\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \mathrm{TC} & \text { Profi } \
\hline \$ 10 & 1 & 10 & 10 & 4 & \
\hline 9 & 2 & & & 8 & \
\hline 8 & 3 & & & 12 & \
\hline 7 & 4 & & & 16 & \
\hline 6 & 5 & & & 20 & \
\hline 5 & 6 & & & 24 & \
\hline 4 & 7 & & & 28 & \
\hline 3 & 8 & & & 32 & \
\hline 2 & 9 & & & 36 & \
\hline 1 & 10 & & & 40 & \
\hline
\end{array}$ 
-By calculating the data provided in Exhibit 8.5, how much is the profit if the firm decides to produce 7 units?
A) zero.
B) 6.
C) 12.
D) 16.

Quizplus · Accepted Answer

The profit is calculated as Total Revenue (TR) minus Total Cost (TC). For 7 units, TR = Price * Quantity = 4 * 7 = 28, and TC = 28. Therefore, Profit = 28 - 28 = 0.

Narrbegin Exhibit 8 -By Calculating the Data Provided in Exhibit 8