Figure 15-4

-Refer to Figure 15-4. What price will the monopolist charge in order to maximize profit?

Question

Figure 15-4  ​
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-Refer to Figure 15-4. What price will the monopolist charge in order to maximize profit?

Quizplus · Accepted Answer

The monopolist will charge price C in order to maximize profit. At this price, the monopolist is producing output Qm and selling it at a price of Pm. The monopolist's profit is equal to the difference between total revenue and total cost, and at price C, the monopolist is earning the maximum possible profit.

Figure 15-4 ​

Figure 15-4