To maximize profits,the monopolist shown in the figure would produce output of

Name: To maximize profits,the monopolist shown in the figure would produce output of
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Question

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To maximize profit, the monopolist should produce where MR=MC, which is at Q₁. At this output level, the monopolist should charge the highest price possible that consumers are willing to pay, which is P₄. Therefore, the best choice is to produce output of Q₁ and charge a price of P₄.

To Maximize Profits,the Monopolist Shown in the Figure Would Produce