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:

Inventory

Goods and materials held by a company for the ultimate goal of resale or production, including raw materials, work-in-progress, and finished goods.

Bank Credit Cards

Financial instruments issued by banks allowing cardholders to borrow funds up to a pre-approved limit for purchases or cash advances.

Credit Card Expense

Costs incurred from using a credit card, including interest charges, annual fees, and transaction fees.

Sales

The total amount earned from selling goods or services before any costs or expenses are deducted.