Use the figure to answer the following question(s).
Figure 11-2

The cost and demand conditions for a monopolist are depicted in Figure 11-2. If the monopolist is maximizing profit, it will charge a price of

Question

Use the figure to answer the following question(s).
Figure 11-2

The cost and demand conditions for a monopolist are depicted in Figure 11-2. If the monopolist is maximizing profit, it will charge a price of

Quizplus · Accepted Answer

The monopolist will produce at the quantity where marginal cost equals marginal revenue, which is at 2,000 units. At this quantity, the monopolist will charge the highest price possible given demand, which is $40. Therefore, the answer is C, $40 and produce an output of 2,000.

Use the Figure to Answer the Following Question(s)