Asked by Brooke Patterson on Jun 27, 2024
Verified
Refer to Table 17-1. If Sydney and Matthew operate as a profit-maximizing monopoly in the market for water, how many gallons of water will be produced and sold?
A) 0
B) 630
C) 540
D) 1,080
Profit-Maximizing
A method or strategy executed by a company aiming to achieve the highest possible profit given the constraints it faces.
Marginal Cost
The cost of producing one additional unit of a good or service, crucial for economic decision-making.
- Discover the strategies that lead to maximum profit for firms in distinct market situations.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
The profit-maximizing quantity is where total revenue is maximized, which is at 540 gallons, as indicated by the highest total revenue of $12,960 in the table.
Learning Objectives
- Discover the strategies that lead to maximum profit for firms in distinct market situations.