Question

Can someone explain the steps to why this is the answer?

SCOPUHU UI IPL IU OF 171 complete X 10.1 Question 28 (Algo) Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Sold per Day Total Variable Cost Total Revenue 100 200 Total Fixed Cost $150 $150 $150 $150 $150 $150 $150 $150 Price per Meal $3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 300 400 500 600 700 $250 $450 $650 $815 $1,010 $1,230 $1,455 $325 $600 S825 $1,000 $1,125 $1,200 $1,225 For a single-price monopolist, the profil-maximizing price and number of meals per day is O A 300 meals at $2.75 per meal. B. 400 meals at $2.50 per meal. eXC. 500 meals at $2.25 per meal. D. 600 meals at $2.00 per meal O E 700 meals at $1.75 per meal.

Answer 1

Q	P	TFC	TVC	TR	TC	MC	MR
0	3.5	150	0	0	150
100	3.25	150	250	325	400	2.5	3.25
200	3	150	450	600	600	2	2.75
300	2.75	150	650	825	800	2	2.25
400	2.5	150	815	1000	965	1.65	1.75
500	2.25	150	1010	1125	1160	1.95	1.25
600	2	150	1230	1200	1380	2.2	0.75
700	1.75	150	1455	1225	1605	2.25	0.25

The monopolist would set MC=MR for profit maximization

it would produce Q = 400 units at P = 2.5