Figure 11-3
-Using the graph in Figure 11-3, the profit-maximizing monopolist will charge a price
A)of more than $3.
B)of $3.
C)between $2 and $3.
D)of $2.

Question

Figure 11-3 
-Using the graph in Figure 11-3, the profit-maximizing monopolist will charge a price
A)of more than $3. 
B)of $3. 
C)between $2 and $3. 
D)of $2.

Quizplus · Accepted Answer

A profit-maximizing monopolist will set a price where marginal cost equals marginal revenue, which typically results in a price higher than the competitive equilibrium price, often more than $3 in this context.

Figure 11-3 -Using the Graph in Figure 11-3, the Profit-Maximizing Monopolist Will