Figure 7.4
-Suppose that Figure 7.4 shows a monopolistʹs demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by producing a quantity of:
A)30 units.
B)50 units.
C)60 units.
D)There is not sufficient information.

Question

Figure 7.4
-Suppose that Figure 7.4 shows a monopolistʹs demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by producing a quantity of:
A)30 units. 
B)50 units. 
C)60 units. 
D)There is not sufficient information.

Quizplus · Accepted Answer

The monopolist would maximize its profit by producing a quantity where marginal revenue equals marginal cost. In this case, marginal revenue equals marginal cost at a quantity of 30 units.

Figure 7.4 -Suppose That Figure 7.4 Shows a Monopolistʹs Demand Curve, Marginal