Refer to the Information Provided in Table 13 -Refer to Table 13

question 237

Multiple Choice

Refer to the information provided in Table 13.2 below to answer the question(s) that follow.
Table 13.2
$$\begin{array} { | c | c | } \hline \text { Price (\$) } & \text { Quantity } \\\hline 10.00 & 1 \\\hline 9.00 & 2 \\\hline 8.00 & 3 \\\hline 7.00 & 4 \\\hline 6.00 & 5 \\\hline 5.00 & 6 \\\hline 4.00 & 7 \\\hline\end{array}$$
-Refer to Table 13.2. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $4 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.

• A) $6; 5
• B) $7; 4
• C) $5; 6
• D) $8; 3

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Definitions:

Contest

A competition or challenge where individuals or groups compete against each other to achieve a particular objective.

Counterpoint

A technique in music wherein two or more voices independently harmonize with each other.

Stratification

The arrangement or classification of something, often society, into different groups or layers based on characteristics like wealth, race, or social status.

Capitalist Societies

Societies characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.