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

question 126

Multiple Choice

Refer to the information provided in Table 13.4 below to answer the question(s) that follow.
Table 13.4
$$\begin{array} { | c | c | } \hline \text { Price (\$) } & \text { Quantity } \\\hline 20.00 & 1 \\\hline 18.00 & 2 \\\hline 16.00 & 3 \\\hline 14.00 & 4 \\\hline 12.00 & 5 \\\hline 10.00 & 6 \\\hline 8.00 & 7 \\\hline\end{array}$$
-Refer to Table 13.4. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $8 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.

• A) $12; 5
• B) $14; 4
• C) $10; 6
• D) $18; 2

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Definitions:

Equity Method Investments-Ferris

A specific example or case of using the equity method for accounting for investments in which an investor has significant influence over the investee, but does not control it.

Cash Dividends

Payments made by a company to its shareholders out of its profits in the form of cash.

Net Income

The final amount of profit a company makes after subtracting costs, taxes, and expenses from its gross revenue.

Fair Value

An estimated market value of an asset or liability based on current market prices or valuations.