Figure 10-3
Figure 10-3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 10-3.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 10-3
  Figure 10-3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 10-3.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 10-3 Figure 10-3 Above Shows the Demand and Cost