Table: Monopolist Refer to the Table

question 178

Multiple Choice

Table: Monopolist $$\begin{array} { c c c } \hline \text { Output } & \text { Total Revenue } & \text { Marginal Cost } \\\hline 1 & \$ 20 & \$ 10 \\2 & 50 & 10 \\3 & 70 & 10 \\4 & 80 & 10 \\5 & 85 & 10 \\6 & 88 & 10 \\7 & 90 & 10 \\\hline\end{array}$$ Refer to the table. What is the monopolist's profit-maximizing level of output?

• A) 3
• B) 4
• C) 5
• D) 6

---

Definitions:

Unemployment

A situation where individuals who are capable of working and willing to work at prevailing wage rates cannot find employment.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Friedman

Refers to Milton Friedman, a prominent economist known for his work on monetarism, advocating for free markets and a limited role of government in the economy.

Money Supply

The total volume of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.