Exhibit 9-4

-What is the profit-maximizing or loss-minimizing output for the monopolist represented in Exhibit 9-4, assuming it does not price discriminate?
A) 0 units
B) 2 units
C) 3 units
D) 4 units
E) 5 units

Question

Exhibit 9-4
 
-What is the profit-maximizing or loss-minimizing output for the monopolist represented in Exhibit 9-4, assuming it does not price discriminate?
A) 0 units 
B) 2 units 
C) 3 units 
D) 4 units 
E) 5 units

Quizplus · Accepted Answer

The profit-maximizing or loss-minimizing output for a monopolist is where marginal cost (MC) equals marginal revenue (MR). Without the exhibit, we assume that this condition is met at 3 units.

Exhibit 9-4 -What Is the Profit-Maximizing or Loss-Minimizing Output for the Monopolist