In Table 14-1, explain why 4 is the profit-maximizing output. TABLE 14-1 Monopolistic Profit Maximization (1) (2)

In Table 14-1, explain why 4 is the profit-maximizing output.

Transcribed Image Text:

TABLE 14-1 Monopolistic Profit Maximization (1) (2) (3) (4) (5) (6) Total Marginal Total Marginal Quantity Price Revenue Revenue Cost Cost (7) Average Total Cost (8) Profit 0123456789 $36 $ 0 $ 47 $ -47 $ 33 $ 1 33 33 48 $48.00 -15 27 30 60 50 21 24 25.00 10 27 81 54 18.00 27 15 8 24 96 62 15.50 34 9 16 21 105 78 15.60 27 3 24 18 108 102 17.00 6 -3 40 15 105 142 20.29 -37 -9 56 12 29 96 198 24.75 -102 -15 80 81 278 30.89 -197