-For the monopoly shown in the figure above, the profit maximizing output is
A) 20 units.
B) more than 40 units and less than 60 units.
C) 40 units.
D) 60 units.

Question

-For the monopoly shown in the figure above, the profit maximizing output is
A) 20 units. 
B) more than 40 units and less than 60 units. 
C) 40 units. 
D) 60 units.

Quizplus · Accepted Answer

In a monopoly, the profit-maximizing output is where marginal cost (MC) equals marginal revenue (MR). Typically, this occurs at a specific quantity, often shown in diagrams as a point where the MC and MR curves intersect. In this case, it is 40 units.

-For the Monopoly Shown in the Figure Above, the Profit