On a graph, to determine the price a profit-maximizing monopolist would charge, find the quantity at which MC and MR intersect and read up to the demand curve.

Name: On a graph, to determine the price a profit-maximizing monopolist would charge, find the quantity at which MC and MR intersect and read up to the demand curve.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

This is correct. The profit-maximizing monopolist will produce at the quantity at which MC = MR. To determine the price, we then read up to the demand curve at that quantity.

On a Graph, to Determine the Price a Profit-Maximizing Monopolist