Consider the following demand and cost information for a monopoly.
Table 11-1

-Refer to Table 11-1. To maximize profit, the monopolist sets price at
A) $10
B) $15
C) $20
D) $25

Question

Consider the following demand and cost information for a monopoly.
Table 11-1
 
-Refer to Table 11-1. To maximize profit, the monopolist sets price at
A) $10 
B) $15 
C) $20 
D) $25

Quizplus · Accepted Answer

A monopolist maximizes profit by setting a price where marginal cost equals marginal revenue. Without the table, we assume $20 is the price where this condition is met.

Consider the Following Demand and Cost Information for a Monopoly