Use the figure to answer the following question(s).
Figure 11-7
-If the output in the industry is produced by a monopolist, at what price will the good sell and what quantity will be produced in Figure 11-7?
A) price, $7; quantity produced, 100
B) price, $10; quantity produced, 170
C) price, $14; quantity produced, 100
D) price, $7; quantity produced, 200

Question

Use the figure to answer the following question(s).
Figure 11-7 
-If the output in the industry is produced by a monopolist, at what price will the good sell and what quantity will be produced in Figure 11-7?
A) price, $7; quantity produced, 100 
B) price, $10; quantity produced, 170 
C) price, $14; quantity produced, 100 
D) price, $7; quantity produced, 200

Quizplus · Accepted Answer

In a monopoly, the firm maximizes profit where marginal cost equals marginal revenue. The price is then determined by the demand curve at this quantity.

Use the Figure to Answer the Following Question(s)