Figure 15-8

-Refer to Figure 15-8.To maximize its profit,a monopolist would choose which of the following outcomes?
A) 100 units of output and a price of $10 per unit
B) 100 units of output and a price of $20 per unit
C) 150 units of output and a price of $15 per unit
D) 200 units of output and a price of $20 per unit

Question

Figure 15-8
 
-Refer to Figure 15-8.To maximize its profit,a monopolist would choose which of the following outcomes?
A) 100 units of output and a price of $10 per unit 
B) 100 units of output and a price of $20 per unit 
C) 150 units of output and a price of $15 per unit 
D) 200 units of output and a price of $20 per unit

Quizplus · Accepted Answer

A monopolist maximizes profit where marginal cost equals marginal revenue. At 100 units and a price of $20, the monopolist likely achieves this balance, maximizing profit.

Figure 15-8 -Refer to Figure 15-8.To Maximize Its Profit,a Monopolist Would Choose