The following question are based on the following diagram of a monopolist:

-At the profit-maximizing output rate,marginal costs will be
A) 0A.
B) 0B.
C) 0C.
D) 0D.
E) 0E.

Question

The following question are based on the following diagram of a monopolist:
 
-At the profit-maximizing output rate,marginal costs will be
A) 0A. 
B) 0B. 
C) 0C. 
D) 0D. 
E) 0E.

Quizplus · Accepted Answer

At the profit-maximizing output rate, the monopolist will produce where marginal revenue (MR) equals marginal cost (MC). In the diagram, MC intersects MR at point C. Therefore, the marginal cost at the profit-maximizing output rate is 0C. Thus, the answer is C) 0C.

The Following Question Are Based on the Following Diagram of a Monopolist