Figure 11-6

-If the output in the industry is produced by a monopolist,at what price will the good sell and what quantity will be produced in Figure 11-6?

Question

Figure 11-6
 
-If the output in the industry is produced by a monopolist,at what price will the good sell and what quantity will be produced in Figure 11-6?

Quizplus · Accepted Answer

In a monopoly market, the producer sets the market price at the point where marginal revenue (MR) equals marginal cost (MC). In Figure 11-6, this occurs at point P₃, where the MC curve intersects the MR curve. At this price of P₃, the quantity of output produced is Q₁. Therefore, the correct answer is C.

Figure 11-6 -If the Output in the Industry Is Produced by a Is