COSTS
REVENUES
Quantity
Produced
Marginal
Total
Cost
Demanded
Price
Table 15-21
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.
Quantity Total Cost
Marginal
Revenue Revenue
0
$100
0
$170
1
$140
1
$160
2
$184
2
$150
3
$230
3
$140
4
$280
4
$130
5
$335
5
$120
6
$395
6
$110
7
$475
7
$100
8
$575
8
$95
Refer to Table 15-21. If the monopolist can engage in perfect price discrimination, what is the quantity that maximizes economic profit?
a. 7 ties
b. 8 ties
c. 5 ties
d. 6 ties
