Question 1
Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what price should it charge per unit of output so as to maximize its profits?
◦ $4.00
◦ $3.50
◦ $3.00
◦ $2.50
Question 2
Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the maximum profit the monopoly can earn?
◦ $4,800
◦ $5,600
◦ $6,000
◦ $8,400
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