Answer:
A. January 2016
B. May 2016
C. June 2016
Explanation:
Req. A
From the data table above, it is easy to understand that only 10,000 mobile phones were sold in the month of January.
Req. B
From the information above, the highest sales level was in the month of May with a 12,000 smartphones.
Req. C
We know, a monopolist maximizes its profit when marginal revenue equals to the marginal cost. MR = MC.
In that case, two months had equal marginal revenue = marginal cost, i.e., February and June.
According to the maximizing rule, at which point there are a high number of sales and MR = MC, that sales point is considered as maximizing profit.
Therefore, in the month of June, the sales were high with 11,000 smartphones. Hence, June was the firm's maximizing profit.
