Figure 15-3

Figure 15-3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 15-3.Suppose the monopolist represented in the diagram above produces positive output.What is the price charged at the profit-maximizing/loss-minimizing output level?
A)$38
B)$54
C)$68
D)$75

Question

Figure 15-3
  
Figure 15-3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 15-3.Suppose the monopolist represented in the diagram above produces positive output.What is the price charged at the profit-maximizing/loss-minimizing output level?
A)$38 
B)$54 
C)$68 
D)$75

Quizplus · Accepted Answer

The profit-maximizing/loss-minimizing output level is where marginal revenue (MR) equals marginal cost (MC). In the given diagram, this occurs at an output level of 9 units. At this output level, the monopolist charges a price of $68 per unit, which is given by the point where the demand curve intersects with the output level of 9. Therefore, the correct answer is C.

Figure 15-3 Figure 15-3 Above Shows the Demand and Cost Curves Facing