The following question are based on the following data for a monopolist:

-At the profit-maximizing output rate,marginal costs are
A) $12.50.
B) $7.50.
C) $5.00.
D) $0.50.
E) impossible to calculate from the information given.

Question

The following question are based on the following data for a monopolist:
 
-At the profit-maximizing output rate,marginal costs are
A) $12.50. 
B) $7.50. 
C) $5.00. 
D) $0.50. 
E) impossible to calculate from the information given.

Quizplus · Accepted Answer

At profit-maximizing output, marginal revenue should equal marginal cost. From the graph, we can see that the monopolist produces output level where marginal revenue is $5.00. Therefore, the marginal cost at this output level must also be $5.00.

The Following Question Are Based on the Following Data for a Monopolist