Homework: Chapter 10 Score: 1 of 1 pt 4 of 10 (10 complete) 10.1 Question 27 (Al

Question

Homework: Chapter 10 Score: 1 of 1 pt 4 of 10 (10 complete) 10.1 Question 27 (Algo) Your food-services company has been named as the sole provider of meals at a small university Total Sold per Day Total Variable Cost Price per Meal CostVriable Cost otal Revens 100 200 300 400 500 600 700 $3.25 $3.00 $2.75 $2.50 2.25 $2.00 $1.75 $150 $150 $150 $150 $150 $150 $150 $150 $300 $500 $650 $750 $840 $905 $995 $325 $600 $825 $1,000 $1,125 $1,200 $1,225 For a single-price monopolist, the profit-maximizing price and number of meals per day is A. 700 meals at $1 75 per meal. B. 300 meals at $2.75 per meal. c) c. 400 meals at $2.50 per meal. D. 500 meals at $2.25 per meal. 600 meals at $2.00 per meal Question is complete. Tap on the red indicators to see incorrect answers All parts showing hp

Explanation / Answer

The correct answer is e> 600 meals

Reason

The marginal revenue at 600 meals will be $75 which is more than the marginal cost $65. If we increase the output more, the marginal revenue will be lesser than the marginal cost, thus the profit maximizing output is 600

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