The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
$\begin{array}{cc}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline 8 & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
FIGURE 10- 1
-Suppose that a single- price monopolist calculates that at its present output,marginal revenue is $2 and marginal cost is $1.If the price of the product is $3,the monopolist could maximize its profits by

Question

The figure below shows the demand schedule and demand curve for a product produced by a single- price monopolist.
 $\begin{array}{cc}
\text { Price (\$) } & \begin{array}{l}
\text { Quantity } \
\text { Demanded }
\end{array} \
\hline  8 & 5 \
7 & 6 \
6 & 7 \
5 & 8 \
4 & 9 \
3 & 10 \
2 & 11
\end{array}$
 FIGURE 10- 1
-Suppose that a single- price monopolist calculates that at its present output,marginal revenue is $2 and marginal cost is $1.If the price of the product is $3,the monopolist could maximize its profits by

Quizplus · Accepted Answer

The monopolist should increase output because marginal revenue ($2) is greater than marginal cost ($1), indicating that producing more will increase profits. Lowering the price can help sell the additional output.

The Figure Below Shows the Demand Schedule and Demand Curve