Refer to Table 13.2. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $2 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.

A) $6; 5
B) $7; 4
C) $5; 6
D) $8; 3

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at different price levels.

Marginal Cost

The elevation in full costs that come from generating an additional unit of a good or service.

Average Cost

The total cost divided by the number of goods produced, representing the per unit cost of production.