Figure 11-20
The production level that will maximize the profit for the monopoly in Figure 11-20 is

Question

Figure 11-20 
The production level that will maximize the profit for the monopoly in Figure 11-20 is

Quizplus · Accepted Answer

The profit-maximizing level of output for a monopoly is where marginal revenue (MR) equals marginal cost (MC). In the graph, the MR curve intersects the MC curve at point E, where the quantity produced is 17 units. At this quantity, the monopoly can charge a price of $38 and will have a total cost of $24, resulting in a profit of $14 per unit. If the monopoly produced more than 17 units, the marginal cost would be higher than the marginal revenue, leading to a decrease in profits. Therefore, the best choice is C.

Figure 11-20 the Production Level That Will Maximize the Profit for the Profit