Use the figure below to answer the following questions. Figure 12.2.2
-When the single-price monopoly illustrated in Figure 12.2.2 is maximizing profit,it produces
A)3 units and price is $3 a unit.
B)3 units and price is $6 a unit.
C)4 units and price is $4 a unit.
D)4 units and price is $5 a unit.
E)5 units and price is $4 a unit.

Question

Use the figure below to answer the following questions.  Figure 12.2.2
-When the single-price monopoly illustrated in Figure 12.2.2 is maximizing profit,it produces
A)3 units and price is $3 a unit. 
B)3 units and price is $6 a unit. 
C)4 units and price is $4 a unit. 
D)4 units and price is $5 a unit. 
E)5 units and price is $4 a unit.

Quizplus · Accepted Answer

A single-price monopoly maximizes profit where marginal revenue equals marginal cost. The choice that aligns with this principle, given typical demand and cost structures, is producing 3 units at a price of $6 a unit, as it suggests a point on the demand curve where price is above marginal cost, maximizing the difference between total revenue and total cost.

Use the Figure Below to Answer the Following Questions