Table 11-5 Table 11-5 Shows the Demand and Cost Data Facing a Price

question 302

Multiple Choice

Table 11-5
$\begin{array}{|c|c|c|}\hline \text { Quantity } & \text { Price } & \text { Total Cost } \\\hline 1 & \$ 18 & \$ 14 \\\hline 2 & 16 & 20 \\\hline 3 & 14 & 26 \\\hline 4 & 12 & 32 \\\hline 5 & 10 & 38 \\\hline 6 & 8 & 44 \\\hline\end{array}$ Table 11-5 shows the demand and cost data facing a monopolistically competitive producer of canvas bags.
-Refer to Table 11-5.What are the firm's profit-maximizing or loss-minimizing price and quantity?

• A) price = $10; quantity = 5.
• B) price = $12; quantity = 4.
• C) The firm should shut down temporarily.
• D) This cannot be determined from the information given.