Refer to the following table which gives the demand and cost data for a price-setting firm: What is the profit-maximizing price?

Question

Refer to the following table which gives the demand and cost data for a price-setting firm:  What is the profit-maximizing price?

Quizplus · Accepted Answer

To find the profit-maximizing price, we need to find the price at which the difference between the revenue and cost is the highest. We can calculate the revenue for each price by multiplying the demand by the price, and then subtract the corresponding cost to get the profit. 
For example, 
At a price of $20, the demand is 10, so the revenue is 10*$20=$200, and the cost is $220, so the profit is -$20. 
Similarly, we can calculate the profit for each price and then choose the price at which the profit is highest. 
Price of $15 yields a profit of -$180, 
Price of $16 yields a profit of -$120, 
Price of $17 yields a profit of -$60, 
Price of $18 yields a profit of $0, 
Price of $19 yields a profit of $60.

Thus, the profit is maximized at a price of $18.

Refer to the Following Table Which Gives the Demand and Cost