Exhibit 9-5 Demand and Cost Data for a Monopolist -Refer to Exhibit 9-5

question 30

Multiple Choice

Exhibit 9-5 Demand and cost data for a monopolist $\begin{array}{|c|c|c|c|c|c|}\hline \text { Price } & \text { Quantity } & \text { TR } & \text { MR } & \text { TC } & \text { Profit } \\\hline \$ 10 & 1 & 10 & 10 & 4 & \\9 & 2 & & & 8 & \\8 & 3 & & & 12& \\7 & 4 & & & 16& \\6 & 5 & & &20 \\5 & 6 & & & 24& \\4 & 7 & & & 28 & \\3 & 8 & & & 32& \\2 & 9 & & & 36 & \\1 & 10 & & &40 & \\\hline\end{array}$
-Refer to Exhibit 9-5. The demand schedule and cost schedule for a monopolist are provided. Which output level maximizes profit?

• A) 2.
• B) 6.
• C) 4.
• D) 5.
• E) 7.

---

Definitions:

Inventory Cost Formula

Methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and weighted average cost used to calculate the cost of goods sold and ending inventory valuation.

FIFO

Stands for "First-In, First-Out," an inventory valuation method where goods sold are those that are oldest in the inventory first.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding new purchases to the starting inventory and subtracting goods sold.

Physical Flow

The actual movement of goods from the point of production through to the end-user, encompassing distribution and logistics.