Figure 11-6
-The profit-maximizing monopolist in Figure 11-6 will sell its output at

Name: Figure 11-6 -The profit-maximizing monopolist in Figure 11-6 will sell its output at A)P 1 . B)P 2 . C)P 3 . D)P4.
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Question

Figure 11-6 -The profit-maximizing monopolist in Figure 11-6 will sell its output at A)P₁. B)P₂. C)P₃. D)P4.

Quizplus · Accepted Answer

A profit-maximizing monopolist sets its output where marginal cost equals marginal revenue and sells at the highest price consumers are willing to pay for that quantity, which is typically found on the demand curve at P2.

Figure 11-6 -The Profit-Maximizing Monopolist in Figure 11-6 Will Sell Its Output