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Question
Table 13-2| Quantity (cases) | Price (dollars) | Total Revenue (dollars) | Total Cost (dollars) |
| 1 | $75 | $75 | $60 |
| 2 | 70 | 140 | 85 |
| 3 | 65 | 195 | 105 |
| 4 | 60 | 240 | 115 |
| 5 | 55 | 275 | 130 |
| 6 | 50 | 300 | 155 |
| 7 | 45 | 315 | 190 |
| 8 | 40 | 320 | 230 |
| 9 | 35 | 315 | 280 |
Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 13-2 shows the firm's demand and cost schedules.
Refer to Table 13-2. What is the output (Q) that maximizes profit and what is the price (P) charged?
A) P=$55; Q=5 cases
B) P=$50; Q=6 cases
C) P=$45; Q=7 cases
D) P=$40; Q=8 cases
Answer
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