Exhibit 9-3
-At the profit-maximizing output for the firm in Exhibit 9-3, the single price monopolist will charge _____ per unit of output.
A) $30
B) $24
C) $22
D) $20
E) $10

Question

Exhibit 9-3 
-At the profit-maximizing output for the firm in Exhibit 9-3, the single price monopolist will charge _____ per unit of output.
A) $30 
B) $24 
C) $22 
D) $20 
E) $10

Quizplus · Accepted Answer

The profit-maximizing output for a monopolist is where marginal cost (MC) equals marginal revenue (MR). At this output level, the monopolist will charge the price indicated on the demand curve, which is $24 in this scenario.

Exhibit 9-3 -At the Profit-Maximizing Output for the Firm in Exhibit 9-3