Table 15-18Tommy’s Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy’s is able to engage in perfect price discrimination. COSTSREVENUESQuantityProducedTotal CostMarginalCostQuantityDemandedPriceTotalRevenueMarginalRevenue 0 $100-- 0$170 -- 1 $140 1$160 2 $184 2$150 3 $230 3$140 4 $280 4$130 5 $335 5$120 6 $395 6$110 7 $475 7$100 8 $575 8$95 Refer to Table 15-18. If the monopolist can engage in perfect price discrimination, what is the quantity that maximizes economic profit?Group of answer choices5 ties6 ties7 ties8 ties

In a monopoly there is a sole producer for a good thus having maximum market power.

Answered: Table 15-18 Tommy’s Tie Company, a…

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Table 15-18
Tommy’s Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy’s is able to engage in perfect price discrimination.

COSTS	REVENUES
Quantity Produced	Total Cost	Marginal Cost	Quantity Demanded	Price	Total Revenue	Marginal Revenue
0	$100	--	0	$170		--
1	$140		1	$160
2	$184		2	$150
3	$230		3	$140
4	$280		4	$130
5	$335		5	$120
6	$395		6	$110
7	$475		7	$100
8	$575		8	$95

Refer to Table 15-18. If the monopolist can engage in perfect price discrimination, what is the quantity that maximizes economic profit?

Group of answer choices

5 ties

6 ties

7 ties

8 ties

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