Figure 15-14

-Refer to Figure 15-14.To maximize its profit,a monopolist would choose which of the following outcomes?
A) Q = 30 and P = 30
B) Q = 30 and P = 60
C) Q = 45 and P = 45
D) Q = 60 and P = 30

Question

Figure 15-14
 
-Refer to Figure 15-14.To maximize its profit,a monopolist would choose which of the following outcomes?
A) Q = 30 and P = 30 
B) Q = 30 and P = 60 
C) Q = 45 and P = 45 
D) Q = 60 and P = 30

Quizplus · Accepted Answer

A monopolist maximizes profit by producing the quantity where marginal cost equals marginal revenue (MC=MR) and then charging the highest price consumers are willing to pay for that quantity, which is found on the demand curve.

Figure 15-14 -Refer to Figure 15-14.To Maximize Its Profit,a Monopolist Would Choose