Answer the Question on the Basis of the Following Demand

question 90

Multiple Choice

Answer the question on the basis of the following demand and cost data for a pure monopolist: $\begin{array}{l}\begin{array}{ccc}&\text { Demand Data }&\\&&\text { Quantity }\\\text { Price } & & \text { Demanded } \\\hline\$ 5.50 & & 3 \\5.00 & & 4 \\4.50 & & 5 \\3.85 & & 6 \\3.35 & & 7 \\2.90 & & 8 \\2.50 & & 9\end{array}\begin{array}{ccc}&\text { Cost Data }&\\\\\text { Output } & & \text { Total Cost } \\\hline3& & \$ 5.00 \\4&&6.00\\5 & & 6.00 \\6 & & 7.50 \\7 & & 9.00 \\8 & & 11.00 \\9 & & 14.00\end{array}\end{array}$ Refer to the data.The profit-maximizing level of output will be:

• A) 4 units.
• B) 7 units.
• C) 6 units.
• D) 5 units.

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Definitions:

Central

Pertaining to the main or most important parts; often used to describe core functions or areas within a system or body.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and breathing.

Involuntary Muscles

Muscles that operate without conscious control, involved in functions such as heartbeat and digestion.

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or the environment.