Consider the Following Demand and Cost Information Refer to the Table Above

question 12

Multiple Choice

Consider the following demand and cost information ?

$\begin{array}{|c|c|c|}\hline \underline{\text { Quantity }} & \underline{\text { Price }} & \underline{\text { Total Cost }} \\\hline 0 & € 40 & € 10 \\\hline 1 & € 30 & € 15 \\\hline 2 & € 20 & € 25 \\\hline 3 & € 10 & € 40 \\\hline 4 & € 0 & € 60 \\\hline\end{array}$
Refer to the table above. To maximize profit, the monopolist sets the price at
?

• A) €40
• B) €20
• C) €0
• D) €10

---

Definitions:

Dividend

Shareholders receive a payment from a corporation, commonly as a share of the company's profits.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified quantity of an asset at a set price (the strike price) within a specified time.

Expiration

In finance, this term typically refers to the date on which a contract, such as an option or futures contract, ceases to exist and the final settlement or exercise must occur.