The Table Given Below Shows the Price Charged by a Firm

question 101

Multiple Choice

The table given below shows the price charged by a firm and the marginal cost incurred by it for the different levels of the output. Table 10.2

- What is the profit-maximizing output level for the monopoly firm described in Table 10.2 if the firm is earning a positive economic profit?

• A)1 unit
• B)2 units
• C)3 units
• D)5 units
• E)6 units

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace or the typical price of a good or service in the open market.

Discount

A reduction applied to the regular price of goods or services, typically offered to prompt payment or to certain customers.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid by a specified date.

Issue Price

Issue price is the cost at which new securities are offered to the public by an issuer, determining the initial capital raised from the financial market.