The following graph shows the average and marginal revenue curves for a monopolist:

-Refer to the graph above to answer this question.What is the monopolist's maximum revenue?
A)$30.
B)$60.
C)$300.
D)$600.
E)$9,000.

Question

The following graph shows the average and marginal revenue curves for a monopolist:
 
-Refer to the graph above to answer this question.What is the monopolist's maximum revenue?
A)$30. 
B)$60. 
C)$300. 
D)$600. 
E)$9,000.

Quizplus · Accepted Answer

The maximum revenue for a monopolist is found at the quantity where marginal revenue equals marginal cost, and then multiplying that quantity by the price. Without a specific graph provided, we can't calculate the exact value. However, given the options, $9,000 seems like an exaggerated figure typically not encountered in standard monopoly scenarios, suggesting a misunderstanding in the question's context or a mistake in the options provided.

The Following Graph Shows the Average and Marginal Revenue Curves