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Suppose the Accompanying Table Describes the Relationship Between Price and Quantity

Question 121

Multiple Choice

Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist.  
 Quntity  Price 1$102$93$84$75$66$57$48$3\begin{array} { | c | c | } \hline \text { Quntity } & \text { Price } \\\hline 1 & \$ 10 \\\hline 2 & \$ 9 \\\hline 3 & \$ 8 \\\hline 4 & \$ 7 \\\hline 5 & \$ 6 \\\hline 6 & \$ 5 \\\hline 7 & \$ 4 \\\hline 8 & \$ 3 \\\hline\end{array} If the marginal cost of producing each unit of output is $5, then at the monopolist's profit-maximizing level of output, the monopolist produces ________ units of output than is socially optimal.


A) 3 fewer
B) 3 more
C) 2 fewer
D) 1 more

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