Table 11-2 Eco Energy Is a Monopolistically Competitive Producer of a Sports

question 92

Multiple Choice

Table 11-2
$\begin{array}{|c|c|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { (cases) }\end{array} & \begin{array}{c}\text { Price } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Revenue } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} \\\hline 1 & \$ 75 & \$ 75 & \$ 60 \\\hline 2 & 70 & 140 & 85 \\\hline 3 & 65 & 195 & 105 \\\hline 4 & 60 & 240 & 115 \\\hline 5 & 55 & 275 & 130 \\\hline 6 & 50 & 300 & 155 \\\hline 7 & 45 & 315 & 190 \\\hline 8 & 40 & 320 & 230 \\\hline 9 & 35 & 315 & 280 \\\hline\end{array}$ Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 11-2 shows the firm's demand and cost schedules.
-Refer to Table 11-2.What is the output (Q) that maximizes profit and what is the price (P) charged?

• A) P = $55; Q = 5 cases
• B) P = $50; Q = 6 cases
• C) P = $45; Q = 7 cases
• D) P = $40; Q = 8 cases