Assume That the Short-Run Cost and Demand Data Given in the Tables

question 80

Multiple Choice

Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. $\quad$$\quad$$\quad$$\quad$ $\text { Cost Data }$ $\quad$$\quad$$\quad$ $\text { Demand Data }$
$\begin{array}{|c|c|c|c}\begin{array}{c}\text { Total } \\\text { Output }\end{array} & \begin{array}{c}\text { Total } \\\text { Cost }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded }\end{array} & \text { Price } \\\hline 0 & \$ 25 & 0 & \$ 60 \\\hline 1 & 40 & 1 & 55 \\\hline 2 & 45 & 2 & 50 \\\hline 3 & 55 & 3 & 45 \\\hline 4 & 70 & 4 & 40 \\\hline 5 & 90 & 5 & 35 \\\hline 6 & 115 & 6 & 30 \\\hline\end{array}$ What will the maximum total profits be?

• A) $65
• B) $85
• C) $90
• D) $110