-The figure above shows the demand and cost curves for a single-price monopoly. The firm will produce ________ units and set a price of ________ per unit.
A) 15; $20
B) 10; $20
C) 10; $30
D) None of the above answers is correct.

Question

-The figure above shows the demand and cost curves for a single-price monopoly. The firm will produce ________ units and set a price of ________ per unit.
A) 15; $20 
B) 10; $20 
C) 10; $30 
D) None of the above answers is correct.

Quizplus · Accepted Answer

A single-price monopoly maximizes profit by producing the quantity where marginal cost (MC) equals marginal revenue (MR) and then setting the price based on the demand curve. In this scenario, the firm produces 10 units and sets a price of $30 per unit.

-The Figure Above Shows the Demand and Cost Curves for a Single-Price