Table 82 The Government of a Small Developing Country Has Granted Exclusive

Table 8.2
$$\begin{array} { | c | c | c | } \hline \text { Quantity per } & \text { Price per } & \text { Total Cost } \\\text { Day (cases) } & \text { Case } \\\hline 1 &\$16& \$ 7.00 \\\hline 2 & 15 & 9.50 \\\hline 3 & 14 & 11.00 \\\hline 4 & 13 & 12.00 \\\hline 5 & 12 & 14.50 \\\hline 6 & 11 & 17.50 \\\hline 7 & 10 & 21.00 \\\hline 8 & 9 & 25.00 \\\hline 9 & 8 & 30.00 \\\hline 10 & 7 & 35.50 \\\hline\end{array}$$ The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. Table 8.2 shows the cost and demand data for this government-protected monopolist.
-Refer to Table 8.2.What is the profit-maximising quantity and price for the monopolist?

A) Quantity = 8 cases, Price = $9
B) Quantity = 7 cases, Price = $10
C) Quantity = 9 cases, Price = $8
D) Quantity = 10 cases, Price = $7

Correct Answer:

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