Demand and cost information for a monopoly
Q P TC
0 40 10
1 30 15
2 20 25
3 10 40
4 0 60
Refer to exhibit, Using the rule that focuses on the marginal approach to maximizing profits, the monopolist maximizes profits by choosing price equal to :
a) $20
b) $0
c) $40
d) $30
e) $10

Question:

Please see the Demand and Cost information reproduced in the attached table

The correct choice is A)

Profit if maximized where price is equal to $20.

At this price, MR = MC.

Please see the attached PDF.

Explanation:

The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost:

That is, the point where MR = MC.

If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output.

Cheers!  

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

answer$225.00;