Figure: Short-Run Monopoly (Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly.The marginal cost of producing the profit-maximizing quantity is cost:
A)N.
B)O.
C)P.
D)Q.

Question

Figure: Short-Run Monopoly  (Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly.The marginal cost of producing the profit-maximizing quantity is cost:
A)N. 
B)O. 
C)P. 
D)Q.

Quizplus · Accepted Answer

The profit-maximizing quantity occurs where marginal revenue equals marginal cost, which is at point P in the figure. Therefore, the marginal cost of producing the profit-maximizing quantity is equal to the vertical distance from point P to the marginal cost curve, which is cost C.

Figure: Short-Run Monopoly (Figure: Short-Run Monopoly) Look at the Figure