Figure 15-5
The following graph depicts the market situation for a monopoly pastry shop called Bearclaws.
-Refer to Figure 15-5. Based upon the information shown, how many units will Bearclaws produce to maximize profits?
A)70
B)90
C)105
D)130

Question

Figure 15-5
The following graph depicts the market situation for a monopoly pastry shop called Bearclaws. 
-Refer to Figure 15-5. Based upon the information shown, how many units will Bearclaws produce to maximize profits?
A)70 
B)90 
C)105 
D)130

Quizplus · Accepted Answer

The correct answer is A because the profit-maximizing output is where marginal cost equals marginal revenue.

Figure 15-5 The Following Graph Depicts the Market Situation for a Monopoly