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

question 186

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 logo hats.The Leafs sell at most 1 hat to each customer,and the table shows each customer's willingness to pay.The marginal cost of producing a hat is $18,and there are no fixed costs.How much is the Leafs' profit at the profit-maximizing output?

• A) $24
• B) $18
• C) $12
• D) $30

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Definitions:

Industrial Production

The measure of output of the industrial sector of the economy, including manufacturing, mining, and utilities.

Foreign Consumers

Individuals or organizations located in one country who purchase goods or services produced in a different country.

Industrial Policy

A strategic effort by a government to encourage the development and growth of specific sectors or industries within the economy.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, typically seen through increases in income, education, and health.