Scenario 15-2
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 15-2.The firm's profit-maximizing price is
A) $30.
B) between $30 and $34.
C) between $34 and $60.
D) $60.

Question

Quizplus · Accepted Answer

The profit-maximizing price for a monopoly is the same as its average revenue, which is given as $60.

Scenario 15-2 A Monopoly Firm Maximizes Its Profit by Producing Q =