The Following Table Shows the Quantity Demanded of a Good

question 81

Multiple Choice

The following table shows the quantity demanded of a good at various prices for a monopoly firm.
Table 11-1 $$\begin{array} { | c | c | } \hline \text { Quantity } & \text { Price } \\\hline 1 & \$ 90 \\\hline 2 & \$ 80 \\\hline 3 & \$ 70 \\\hline 4 & \$ 60 \\\hline 5 & \$ 50 \\\hline 6 & \$ 40 \\\hline 7 & \$ 30 \\\hline 8 & \$ 20 \\\hline 9 & \$ 10 \\\hline\end{array}$$
-Refer to Table 11-1.If the marginal cost of producing each unit is $30,what is the firm's profit-maximizing level of output?

• A)3
• B)4
• C)5
• D)7

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Definitions:

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the stock's liquidity, although the overall value of the company remains unchanged.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Comprehensive Income

It encompasses all changes in equity during a period, except those resulting from investments by and distributions to owners.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.