Use Figure 8.1, which represents the situation faced by a monopolist, to answer the following questions.

-For the firm in Figure 8.1,the profit-maximizing (loss-minimizing)price and level of output are:
A)P₂ and Q₂.
B)P₁ and Q₁.
C)P₄ and Q₁.
D)P₃ and Q₁.

Question

Use Figure 8.1, which represents the situation faced by a monopolist, to answer the following questions.

-For the firm in Figure 8.1,the profit-maximizing (loss-minimizing)price and level of output are:
A)P₂ and Q₂. 
B)P₁ and Q₁. 
C)P₄ and Q₁. 
D)P₃ and Q₁.

Quizplus · Accepted Answer

The Answer is C