-To maximize its profit, the monopoly with the TR and TC curves shown in the figure above will produce
A) 0 units of output.
B) 5 units of output.
C) 15 units of output.
D) 20 units of output.

Question

-To maximize its profit, the monopoly with the TR and TC curves shown in the figure above will produce
A) 0 units of output. 
B) 5 units of output. 
C) 15 units of output. 
D) 20 units of output.

Quizplus · Accepted Answer

A monopoly maximizes profit where marginal revenue (MR) equals marginal cost (MC). This typically occurs before the point where total revenue (TR) and total cost (TC) curves intersect, which is often around the midpoint of the production range, such as 15 units.

-To Maximize Its Profit, the Monopoly with the TR and TC