Use the following to answer question:
Figure: Short-Run Monopoly
-(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The marginal cost of producing the profit-maximizing quantity is cost:
A)N.
B)O.
C)P.
D)Q.

Question

Use the following to answer question:
Figure: Short-Run Monopoly 
-(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The marginal cost of producing the profit-maximizing quantity is cost:
A)N. 
B)O. 
C)P. 
D)Q.

Quizplus · Accepted Answer

The profit-maximizing quantity is where marginal revenue equals marginal cost. In the figure, marginal revenue is equal to MR and marginal cost is equal to MC. The profit-maximizing output is where MC intersects with MR, which is point P. Therefore, the marginal cost of producing the profit-maximizing quantity is cost P.

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