Figure 15-1

Figure 15-1 describes conditions in the monopolized weezil industry. In the absence of government intervention, the monopolist will produce an output equal to

Question

Figure 15-1

Figure 15-1 describes conditions in the monopolized weezil industry. In the absence of government intervention, the monopolist will produce an output equal to

Quizplus · Accepted Answer

In a monopolized industry, the profit-maximizing output level occurs where marginal revenue (MR) equals marginal cost (MC). This occurs at point X in the diagram. The monopolist charges a price equal to the demand curve at the output level, which is represented by point Y on the diagram. Therefore, the correct answer is B.

Figure 15-1 Figure 15-1 Describes Conditions in the Monopolized Weezil Industry. in Weezil