(Table: Profit-Maximizing Monopolist) Refer to the table. When this monopolistis producing 9 units:

Question

Quizplus · Accepted Answer

When the monopolist is producing 9 units, its marginal revenue equals marginal cost, which determines the profit-maximizing level of output. However, the monopolist could increase its profit by raising the price and selling fewer units because the demand for the good is still high enough to generate greater revenue from each unit sold. This is possible because the monopolist has market power and can influence the price of the product. Therefore, choice C is the best choice.

(Table: Profit-Maximizing Monopolist) Refer to the Table