Figure 16-6 Watanabe Sensei operates the only martial arts school in Hartfield. For simplicity, assume that consumers have identical demand curves and that Sensei knows what this demand curve is. Figure 16-6 shows this demand curve.
-Refer to Figure 16-6. If Sensei acts as a single-price monopolist, his profit-maximizing price is ________ and the number of classes sold is ________.

Question

Figure 16-6

Watanabe Sensei operates the only martial arts school in Hartfield. For simplicity, assume that consumers have identical demand curves and that Sensei knows what this demand curve is. Figure 16-6 shows this demand curve.
-Refer to Figure 16-6. If Sensei acts as a single-price monopolist, his profit-maximizing price is ________ and the number of classes sold is ________.

Quizplus · Accepted Answer

A single-price monopolist maximizes profit where marginal revenue equals marginal cost. At this point, the price is P1 and the quantity is Q1.

Figure 16-6 Watanabe Sensei Operates the Only Martial Arts