The figures given below represent the revenue curves of a monopolist. Figure 10.2
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-Refer to Figure 10.2.In order to maximize profits,what quantity should the monopolist produce?
A)B
B)E
C)Between B and E
D)Impossible to determine because we are not given the cost curves.
E)Impossible to determine because we are not given the demand curve.

Question

The figures given below represent the revenue curves of a monopolist. Figure 10.2  
TR: Total revenue curve
AR: Average revenue curve
MR: Marginal revenue curve
-Refer to Figure 10.2.In order to maximize profits,what quantity should the monopolist produce?
A)B 
B)E 
C)Between B and E 
D)Impossible to determine because we are not given the cost curves. 
E)Impossible to determine because we are not given the demand curve.

Quizplus · Accepted Answer

To determine the profit-maximizing quantity for a monopolist, both the demand curve and the cost curves are needed. Without this information, it is impossible to determine the exact quantity.

The Figures Given Below Represent the Revenue Curves of a Monopolist