-Figure 10-17 shows a single-price monopolist.In order to maximize its economic profit in the short run,the firm should produce
A)the output level associated with point F
B)the output level associated with point G
C)the output level associated with point H
D)the output level associated with point I
E)zero

Question

-Figure 10-17 shows a single-price monopolist.In order to maximize its economic profit in the short run,the firm should produce
A)the output level associated with point F 
B)the output level associated with point G 
C)the output level associated with point H 
D)the output level associated with point I 
E)zero

Quizplus · Accepted Answer

The profit-maximizing output level for a single-price monopolist is the output level where marginal revenue equals marginal cost. At point F, marginal revenue is equal to marginal cost, so the firm should produce the output level associated with point F to maximize its economic profit in the short run.

-Figure 10-17 Shows a Single-Price Monopolist