Quantity Total Price Demanded Cost $140 $245 $126 $252 $112 2 $266 $98 3 $287 $84 $315 $70 5 $350 $56 6 $392 $42 $441 $28 8 $497 $14 $560 The table above reports the demand and costs faced by a monopolist. If the government ruled that the monopolist must charge a price equal to its marginal cost, what would the monopolist do? O A. produce 5 units and earn zero profit. O B. produce 4 units and earn a profit of $21.00. O C. produce 7 units and earn a profit of $147.00. O D. Exit the market. O E. None of the other answers.
Quantity Total Price Demanded Cost $140 $245 $126 $252 $112 2 $266 $98 3 $287 $84 $315 $70 5 $350 $56 6 $392 $42 $441 $28 8 $497 $14 $560 The table above reports the demand and costs faced by a monopolist. If the government ruled that the monopolist must charge a price equal to its marginal cost, what would the monopolist do? O A. produce 5 units and earn zero profit. O B. produce 4 units and earn a profit of $21.00. O C. produce 7 units and earn a profit of $147.00. O D. Exit the market. O E. None of the other answers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Quantity
Total
Price
Demanded
Cost
$140
$245
$126
$252
$112
2
$266
$98
3
$287
$84
4
$315
$70
5
$350
$56
6
$392
$42
7
$441
$28
8
$497
$14
9
$560
The table above reports the demand and costs faced by a monopolist. If the government ruled that the monopolist must charge a price equal to its marginal cost, what would the monopolist do?
O A. produce 5 units and earn zero profit.
O B. produce 4 units and earn a profit of $21.00.
O C. produce 7 units and earn a profit of $147.00.
O D. Exit the market.
O E. None of the other answers.
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