Answer the Question on the Basis of the Following Information

question 57

Multiple Choice

Answer the question on the basis of the following information for a pure monopolist: $\begin{array}{ccc}\begin{array}{ccc}\\\text { Output } & & \text { Total Cost } \\\hline0 & & \$ 250 \\1 & & 260 \\2 & & 290 \\3 & & 350 \\4 & & 480 \\5 & & 700\end{array}\begin{array}{l}\text { Product }\\\begin{array}{c}\text { Price } \\\hline \$ 500 \\300 \\250 \\200 \\150 \\100\end{array}\end{array}\end{array}$ If the given profit-maximizing monopolist is able to price discriminate,charging each customer the price associated with each given level of output,how much profit will the firm earn?

• A) $120.
• B) $250.
• C) $300.
• D) $420.

---

Definitions:

Budgeted Rates

Projected costs or expenses associated with specific activities or operations, used for budgeting and planning purposes.

Actual Rates

The current, real-time rates or prices for services, goods, or financial products in the market.

Transfer Price

The price at which goods or services are traded between divisions within the same company.

Internal Transfers

Internal transfers involve the movement of assets, funds, or resources from one part of an organization to another. This can include financial transactions or the reallocation of personnel and materials within the company.