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

question 17

Multiple Choice

Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Table 13.1
$$\begin{array} { | c | c | } \hline \text { Price } ( \$ ) & \text { Quantity } \\\hline 4.00 & 2,000 \\\hline 3.50 & 2,400 \\\hline 3.00 & 2,800 \\\hline 2.50 & 3,200 \\\hline 2.00 & 3,600 \\\hline 1.50 & 4,000 \\\hline 1.00 & 4,400 \\\hline\end{array}$$
-Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?

• A) 2,000
• B) 2,400
• C) 2,800
• D) 3,200

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Definitions:

Commercial Activity

Business operations or actions undertaken for the purpose of generating profit.

Expropriation

The act of a government taking privately owned property to be used for public purposes, usually with compensation to the owner.

Public Purpose

Concise definition: The rationale behind legislative actions or government spending which must benefit the public at large, rather than specific individuals or groups.

Fair Compensation

Equitable financial remuneration offered for work performed or damages incurred, intended to justly reflect the value of the labor provided or the loss suffered.