Use the Table to Answer the Following Question

question 26

Multiple Choice

Use the table to answer the following question.
Table 11-5

The demand and cost schedules of a monopolist are presented in Table 11-5. What price should a profit-maximizing monopolist charge?

• A) $10
• B) $9
• C) $8
• D) $7

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Definitions:

Utility Maximization

The economic principle that individuals seek to allocate their resources in a way that maximizes their satisfaction or utility.

Consumption

The spending on goods and services by households or individuals.

Marginal Utility

The supplementary satisfaction or benefit obtained from using an additional unit of a product or service.

Utility Maximization

An economic principle that suggests consumers aim to get the greatest satisfaction possible from their available resources.