Figure 11-6

-The profit-maximizing monopolist in Figure 11-6 will sell its output at
A)P₁ .
B)P₂.
C)P₃.
D)P₄.

Name: Figure 11-6 -The profit-maximizing monopolist in Figure 11-6 will sell its output at A)P₁ . B)P₂. C)P₃. D)P₄.
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Question

Figure 11-6
 
-The profit-maximizing monopolist in Figure 11-6 will sell its output at
A)P₁ . 
B)P₂. 
C)P₃. 
D)P₄.

Quizplus · Accepted Answer

The profit-maximizing monopolist will produce where marginal revenue (MR) equals marginal cost (MC), which is at output level Q₂. At that level, the monopolist will charge the price P₂. Therefore, the answer is B.

Figure 11-6 -The Profit-Maximizing Monopolist in Figure 11-6 Will Sell Its Output