Refer to Table 16-2. How many tubes of toothpaste will Neem sell ...

[danielfitts88]

Refer to Table 16-2. How many tubes of toothpaste will Neem sell in West Fall and at what price?
 
  A) Q = 2 units; P = 4.50 B) Q = 3 units; P = 4
  C) Q = 5 units; P = 3 D) Q = 4 units; P = 3.50

Question 2

Refer to Figure 15-7. Use the figure above to answer the following questions.
 
  a. What is the profit-maximizing quantity and what price will the monopolist charge?
  b. What is the total revenue at the profit-maximizing output level?
  c. What is the total cost at the profit-maximizing output level?
  d. What is the profit?
  e. What is the profit per unit (average profit) at the profit-maximizing output level?
  f. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?

[vish98]

Answer to Question 1

D

Answer to Question 2

a. Quantity = 50; price = 32
b. Total revenue = 50  32 = 1,600
c. Total cost = 50  20 = 1,000
d. Profit = 1,600 - 1,000 = 600
e. Profit per unit = 32 - 20 = 12
f. If purely competitive, quantity = 80; price = 22