The Table Given Below Shows the Price Charged by a Firm

question 108

Multiple Choice

The table given below shows the price charged by a firm and the marginal cost incurred by it for the different levels of the output. Table 10.2
What is the profit-maximizing output level for the monopoly firm described in Table 10.2 if the firm is earning a positive economic profit?

• A)1 unit
• B)2 units
• C)3 units
• D)5 units
• E)6 units

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Definitions:

Allotment

The distribution or assignment of a portion of something, often referring to shares of stock, land, or time.

Incorporation

Establishing a business entity as a corporation, which holds legal identity separate from its shareholders, enabling it to own property, sue, or be sued.

Advantages

Advantages refer to the beneficial factors or positive outcomes resulting from a specific action, decision, or situation.

Franchising

Arrangements based on contracts of service and the supply of products between larger and smaller units of one organization.