-Refer to Figure 10.8.If the paper books industry becomes monopolized,the profit-maximizing price will be ________ and the profit-maximizing quantity will be ________ units.
A) $25; 600
B) $23; 400
C) $20; 800
D) $10; 400

Question

-Refer to Figure 10.8.If the paper books industry becomes monopolized,the profit-maximizing price will be ________ and the profit-maximizing quantity will be ________ units.
A) $25; 600 
B) $23; 400 
C) $20; 800 
D) $10; 400

Quizplus · Accepted Answer

In a monopolized market, the profit-maximizing condition occurs where marginal revenue equals marginal cost. The choice that aligns with this condition, given the typical demand and cost structures, is a higher price and lower quantity compared to a competitive market outcome, which is represented by option A: $25 and 600 units.