Question

Refer to the table. The profit-maximizing quantity for this monopolist is ________ units.

Price ($)	Quantity (Units)	Total Cost ($)	Average Cost ($)	Average Revenue ($)	Marginal Cost ($)	Marginal Revenue ($)
15	5	19
14	6	22
13	7	25
12	8	28
11	9	32

Group of answer choices

8

7

10

5

Answer 1

Average Cost = Total Cost/Quantity

Average Revenue = Price = Marginal Revenue

Total Revenue = Price x Quantity

Marginal Cost of N^th unit = Total Cost of N units - Total Cost of (N-1) units

Price ($)	Quantity (Units)	Total Cost ($)	Total Revenue ($)	Profit ($) ( =Total Revenue - Total Cost)	Average Cost ($)	Average Revenue ($)	Marginal Cost ($)	Marginal Revenue ($)
15	5	19	75	56	3.80	15	Not enough Information	15
14	6	22	84	62	3.67	14	3	14
13	7	25	91	66	3.57	13	3	13
12	8	28	96	68	3.50	12	3	12
11	9	32	99	67	3.56	11	4	11

From the above table, we see that profit is maximum for a quantity of 8 units.

Ans: 8