Figure 13.2

Figure 13.2 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 13.2.Suppose the monopolist represented in the diagram above produces positive output.What is the profit-maximizing/loss-minimizing output level?
A)630 units
B)800 units
C)850 units
D)880 units

Question

Figure 13.2
  
Figure 13.2 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 13.2.Suppose the monopolist represented in the diagram above produces positive output.What is the profit-maximizing/loss-minimizing output level?
A)630 units 
B)800 units 
C)850 units 
D)880 units

Quizplus · Accepted Answer

The profit-maximizing/loss-minimizing output level is where marginal revenue equals marginal cost. In the diagram, this occurs at an output level of 630 units.

Figure 13.2 Figure 13.2 Above Shows the Demand and Cost Curves Facing