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 charging a price of:
A)$35.
B)$25.
C)$20.
D)$16.

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 charging a price of:
A)$35. 
B)$25. 
C)$20. 
D)$16.

Quizplus · Accepted Answer

The monopolist would maximize its profit by charging a price of $35 because that is the price at which marginal revenue equals marginal cost.

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