Use the Following to Answer Questions -(Table: Prices and Demand)Use Table: Prices and Demand

question 20

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Prices and Demand }\\\begin{array} { l c } \hline \begin{array} { l } \text { Quantity } \\\text { of Hats } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Price } \\\text { per Hat }\end{array} \\\hline 0 & \$ 30 \\1 & 28 \\2 & 26 \\3 & 24 \\4 & 22 \\5 & 20 \\6 & 18 \\7 & 16 \\8 & 14 \\\hline\end{array}\end{array}$$
-(Table: Prices and Demand) Use Table: Prices and Demand.The Toronto Maple Leafs have a monopoly on Leafs Saints logo hats.The marginal cost of producing a hat is $18.The Leafs should produce _____ hats and charge _____ to maximize its profits.

• A) 1;$28
• B) 2;$26
• C) 3;$24
• D) 4;$22

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