Quantity Total Price Demanded Cost $140 $245 $126 $252 $112 2 $266 $98 3 $287 $84 $315 $70 5 $350 $56 6 $392 $42 $441 $28 8 $497 $14 $560 The table above reports the demand and costs faced by a monopolist. If the government ruled that the monopolist must charge a price equal to its marginal cost, what would the monopolist do? O A. produce 5 units and earn zero profit. O B. produce 4 units and earn a profit of $21.00. O C. produce 7 units and earn a profit of $147.00. O D. Exit the market. O E. None of the other answers.

Quantity Total Price Demanded Cost $140 $245 $126 $252 $112 2 $266 $98 3 $287 $84 $315 $70 5 $350 $56 6 $392 $42 $441 $28 8 $497 $14 $560 The table above reports the demand and costs faced by a monopolist. If the government ruled that the monopolist must charge a price equal to its marginal cost, what would the monopolist do? O A. produce 5 units and earn zero profit. O B. produce 4 units and earn a profit of $21.00. O C. produce 7 units and earn a profit of $147.00. O D. Exit the market. O E. None of the other answers.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 29CTQ: Imagine that you ale managing a small firm and thinking about entering the market of a monopolist....

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