Question 1
Refer to the information provided in Table 13.4 below to answer the question(s) that follow.
Refer to Table 13.4. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $4 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.
◦ $12; 5
◦ $18; 2
◦ $10; 6
◦ $16; 3
Question 2
Refer to the information provided in Table 13.4 below to answer the question(s) that follow.
Refer to Table 13.4. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $8 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.
◦ $12; 5
◦ $14; 4
◦ $10; 6
◦ $18; 2
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