The Following Table Shows the Price and Revenue for a Monopolist

question 31

Multiple Choice

The following table shows the price and revenue for a monopolist at different levels of production.The monopolist incurs no marginal cost of production.

$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Price } & \text { Revenue } \\\hline 2 & 16 & 32 \\\hline 3 & 15 & 45 \\\hline 4 & 14.5 & 58 \\\hline 5 & 11.6 & 58 \\\hline 6 & 9.5 & 57 \\\hline 7 & 8 & 56\\\hline\end{array}$$

-Refer to Table .The profit maximizing output level in this case is determined by which of the following criteria?

• A)The monopolist will produce where marginal revenue = 0
• B)The monopolist will produce where marginal cost = 0
• C)The monopolist will produce where total revenue is highest.
• D)The monopolist will produce where per unit price is highest.

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