Exhibit 23-8 Refer to Exhibit 23-8. A profit-maximizing single-price monopolist will produce which quantity of output?

Name: Exhibit 23-8 Refer to Exhibit 23-8. A profit-maximizing single-price monopolist will produce which quantity of output?
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Question

Exhibit 23-8  Refer to Exhibit 23-8. A profit-maximizing single-price monopolist will produce which quantity of output?

Quizplus · Accepted Answer

A profit-maximizing single-price monopolist produces where marginal revenue (MR) equals marginal cost (MC). 
From the exhibit, when the quantity produced is 5, MR=MC at a price of $45. Therefore, the profit-maximizing output will be 5 units.