Problem
A monopolist has demand and cost data given in the table below. The 'P' column gives the demand data -- what is the maximum amount the firm can charge to sell the associated quantity Q? The 'TC' column gives the total cost of producing that level of quantity Q.
|
Q
|
P
|
TC
|
|
0
|
17
|
10
|
|
1
|
15
|
15
|
|
2
|
13
|
19
|
|
3
|
11
|
23
|
|
4
|
9
|
27
|
|
5
|
7
|
32
|
|
6
|
5
|
38
|
|
7
|
3
|
46
|
How many units should this firm produce to maximize profit?