Exhibit 23-9

-Refer to Exhibit 23-9. A single-price monopolist that seeks to maximize profits will sell __________ units and charge a per-unit price of __________.

Question

Exhibit 23-9
 
-Refer to Exhibit 23-9. A single-price monopolist that seeks to maximize profits will sell __________ units and charge a per-unit price of __________.

Quizplus · Accepted Answer

A single-price monopolist maximizes profits where marginal revenue (MR) equals marginal cost (MC). Without the specific exhibit, we typically look for the quantity where MR=MC and then use the demand curve to find the price at that quantity. Choice B is a common structure for such a scenario, suggesting a higher quantity (40 units) at a lower price ($7) compared to monopolistic pricing strategies that do not aim for profit maximization.

Exhibit 23-9 -Refer to Exhibit 23-9. a Single-Price Monopolist That Seeks to Monopolist