(Table: Monopoly) The monopolist represented in the table has a constant marginal cost per unit of $4. The profit-maximizing level of production for this monopolist would be
$\begin{array}{|c|c|}
\hline \boldsymbol{Q} & \boldsymbol{P} \
\hline 0 & 90 \
\hline 3 & 81 \
\hline 6 & 72 \
\hline 9 & 63 \
\hline 12 & 54 \
\hline 15 & 45 \
\hline 18 & 36 \
\hline 21 & 27 \
\hline 24 & 18 \
\hline 27 & 9 \
\hline 30 & 0 \
\hline
\end{array}$
A) 9 units.
B) 12 units.
C) 15 units.
D) 18 units.

Question

Quizplus · Accepted Answer

The profit-maximizing level of production for a monopolist is where marginal revenue equals marginal cost. In this case, the marginal cost is constant at $4, so the profit-maximizing level of production is where marginal revenue is also $4. The table shows that marginal revenue is $4 at a quantity of 9 units, so the profit-maximizing level of production is 9 units.

(Table: Monopoly) the Monopolist Represented in the Table Has a Constant