(Table: Monopoly) the Monopolist Represented in the Table Has a Marginal

question 48

Multiple Choice

(Table: Monopoly) The monopolist represented in the table has a marginal cost per unit of $4 times the quantity produced. The profit-maximizing price for this monopolist would be
$\begin{array}{|c|c|}\hline \boldsymbol{Q} & \boldsymbol{P} \\\hline 0 & 90 \\\hline 3 & 81 \\\hline 6 & 72 \\\hline 9 & 63 \\\hline 12 & 54 \\\hline 15 & 45 \\\hline 18 & 36 \\\hline 21 & 27 \\\hline 24 & 18 \\\hline 27 & 9 \\\hline 30 & 0 \\\hline\end{array}$

• A) $63.
• B) $54.
• C) $45.
• D) $36.

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Definitions:

Parent

A company that holds a controlling interest in one or more subsidiaries, or an individual who has a child.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority share ownership.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

Variability

The degree to which data points in a data set differ from each other and from the mean, indicating the volatility or dispersion around the average value.