Use the following to answer questions:
Figure: Demand, Revenue, and Cost Curves
-(Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves. Figglenuts-R-Us is a monopolist in the figglenut market. Figglenuts-R-Us will sell _____ figglenuts and set a price of _____ to maximize profits.
A) 70; $65
B) 100; $50
C) 120; $40
D) 150; $46

Question

Use the following to answer questions:
Figure: Demand, Revenue, and Cost Curves 
-(Figure: Demand, Revenue, and Cost Curves) Look at the figure Demand, Revenue, and Cost Curves. Figglenuts-R-Us is a monopolist in the figglenut market. Figglenuts-R-Us will sell _____ figglenuts and set a price of _____ to maximize profits.
A) 70; $65 
B) 100; $50 
C) 120; $40 
D) 150; $46

Quizplus · Accepted Answer

Figglenuts-R-Us will sell 70 figglenuts and set a price of $65 to maximize profits. This is because the marginal revenue curve intersects the marginal cost curve at this point, which is the profit-maximizing quantity and price.

Use the Following to Answer Questions