The Following Table Shows the Total Revenue and Total Cost

question 72

Multiple Choice

The following table shows the total revenue and total cost for a monopolist at various levels of output.
Table 11-2 $$\begin{array} { | c | c | c | } \hline \text { Output } & \text { Total Revenue } & \text { Total Cost } \\\hline 1 & 12 & 22 \\\hline 2 & 26 & 26 \\\hline 3 & 50 & 32 \\\hline 4 & 58 & 40 \\\hline 5 & 60 & 51 \\\hline 6 & 61 & 66 \\\hline 7 & 58 & 86 \\\hline 8 & 48 & 112 \\\hline 9 & 36 & 142 \\\hline\end{array}$$
-What is the profit-maximizing level of output for the monopolist in Table 11-2?

• A)3
• B)4
• C)5
• D)1

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Definitions:

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade.

Tariffs

Taxes on imported goods and services, imposed to raise revenue and/or protect domestic industries from foreign competition.

Import Quotas

Government-imposed limits on the volume of specific goods that can be imported, aimed at protecting domestic producers by controlling market supply.

Globalization

The integration of national economies into a worldwide economy.