Table 15-17

-Refer to Table 15-17.If a monopolist faces a constant marginal cost of $1,how much output should the firm produce in order to equate marginal revenue with marginal cost?
A) 3 units
B) 4 units
C) 5 units
D) 6 units

Question

Table 15-17
 
-Refer to Table 15-17.If a monopolist faces a constant marginal cost of $1,how much output should the firm produce in order to equate marginal revenue with marginal cost?
A) 3 units 
B) 4 units 
C) 5 units 
D) 6 units

Quizplus · Accepted Answer

To equate marginal revenue with marginal cost, the monopolist should produce where MR = MC. Given that MC is constant at $1, the firm should produce the quantity where MR is also $1. This occurs at 5 units.

Table 15-17 -Refer to Table 15-17.If a Monopolist Faces a Constant Marginal