how did they do these problems? please explain. thank you! Answer the question o
ID: 1099221 • Letter: H
Question
how did they do these problems? please explain. thank you!
Answer the question on the basis of the following table showing the demand schedule facing a nondiscriminating monopolist: Refer to the above table. The monopolist will select its profit-maximizing level of output somewhere within the: 3-5 unit range of output. 1-3 unit range of output. 1-4 unit range of output. 2-4 unit range of output. Refer to the above table. The profit-maximizing monopolist will sell at a price: of $ 10. Of $7 of $5 that cannot be determined with the information provided. Refer to the above table. Assume that this monopolist faces zero production costs. The profit-maximizing monopolist will set a price of:Explanation / Answer
55 - B
This is because Total revenue increases with each product sold.
56 - D
This is because, we have no idea about the cost structure, which plays an integral part in profit maximisation.
68 -C
This is because it maximises total revenue. At 2 units = 2*7 = $14 , 3 units = 3*5 = $15 , 4 inits = 4*3 = $12. When, the production cost is 0, the profit maximising output is selected.
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