Table 8-B
a Monopoly Producer of Canned Iced Coffee Produces

question 139

Multiple Choice

Table 8-B
A monopoly producer of canned iced coffee produces with the following costs:
$$\begin{array} { c l l l l l l l } \text { Cans of iced coffee: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\text { Total Cast: (in dollars) } & 4 & 7 & 9 & 12 & 16 & 24 & 35\end{array}$$ Consumers demand iced coffee according to the following demand schedule:
$\begin{array}{llllllll}\text { Cans demanded: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\\text { Price per can: } & 6.25 & 6.00 & 5.75 & 5.50 & 5.25 & 5.00 & 4.75\end{array}$
-Refer to Table 8-B.At the profit-maximizing level of output, the firm's profits equal:

• A)$2.35.
• B)$5.
• C)$8.25.
• D)$10.
• E)$10.25.