Exhibit 9-9
-Assuming the firm should not shut down, the profit-maximizing price and quantity for the monopolist in Exhibit 9-9, which does not price discriminate, are
A) P = $4 and Q = 7
B) P = $3.50 and Q = 10
C) P = $2 and Q = 7
D) P = $1 and Q = 7
E) P = $1 and Q = 10

Question

Exhibit 9-9 
-Assuming the firm should not shut down, the profit-maximizing price and quantity for the monopolist in Exhibit 9-9, which does not price discriminate, are
A) P = $4 and Q = 7 
B) P = $3.50 and Q = 10 
C) P = $2 and Q = 7 
D) P = $1 and Q = 7 
E) P = $1 and Q = 10

Quizplus · Accepted Answer

The profit-maximizing price and quantity for the monopolist are P = $4 and Q = 7 because this is the point where marginal revenue equals marginal cost.

Exhibit 9-9 -Assuming the Firm Should Not Shut Down, the Profit-Maximizing Price