Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10- 4
-Refer to Figure 10- 4. This single- price monopolist would maximize total revenue by producing the quantity _ .

Question

Suppose a monopolist faces the demand curve and cost curves shown below.  FIGURE 10- 4
-Refer to Figure 10- 4. This single- price monopolist would maximize total revenue by producing the quantity _ .

Quizplus · Accepted Answer

A single-price monopolist maximizes total revenue at the quantity where marginal revenue equals zero. This typically occurs at the midpoint of the demand curve, which is often represented by Q3 in such diagrams.

Suppose a Monopolist Faces the Demand Curve and Cost Curves