Question

Refer to Table 10-2. Assuming this firm is a single-price monopolist, which of the following best approximates the firm's profit-maximizing output and price?

Select one:

a. 500 meals at $3.50 per meal

b. 350 meals at $2.50 per meal

c. 150 meals at $5.50 per meal

d. 250 meals at $0.75 per meal

e. 550 meals at $3.25 per meal

Your food-services company has been named as the monopoly provider of meals at a small university. The cost and demand schedules are:

Sold per Day Price per Meal

$ Total Cost

$ Total Revenue

$

0 6.00 500 0

100 5.50 550 550

200 5.00 600 1000

300 4.50 675 1350

400 4.00 800 1600

500 3.50 950 1750

600 3.00 1200 1800

700 2.50 1600 1750

TABLE 10-2

Refer to Table 10-2. Assuming this firm is a single-price monopolist, which of the following best approximates the firm's profit-maximizing output and price?

Select one:

a. 500 meals at $3.50 per meal

b. 350 meals at $2.50 per meal

c. 150 meals at $5.50 per meal

d. 250 meals at $0.75 per meal

e. 550 meals at $3.25 per meal

Answer 1

Ans :- option A) 500 meals at $3.50 per meal.