Exhibit 9-12 The nondiscriminating monopolist in Exhibit 9-12 will produce where

Question

Exhibit 9-12  The nondiscriminating monopolist in Exhibit 9-12 will produce where

Quizplus · Accepted Answer

As a profit-maximizing monopolist, the firm will produce where MR = MC. This is because at this point, the additional revenue from producing one more unit (MR) just equals the additional cost of producing that one more unit (MC), resulting in maximum profit. Choosing any other point would result in either lower profits or losses. Therefore, the answer is B.

Exhibit 9-12 the Nondiscriminating Monopolist in Exhibit 9-12 Will