Figure 9.6 Figure 9.6 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.6.What are the profit-maximising output and price for the monopolist?
A)output = 62; price = $24.
B)output = 62; price = $18.
C)output = 83; price = $22.
D)output = 104; price = $20.80.

Question

Figure 9.6  Figure 9.6 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.6.What are the profit-maximising output and price for the monopolist?
A)output = 62; price = $24. 
B)output = 62; price = $18. 
C)output = 83; price = $22. 
D)output = 104; price = $20.80.

Quizplus · Accepted Answer

The profit-maximizing output and price for a monopolist are determined where marginal cost (MC) equals marginal revenue (MR). The choice that corresponds to this condition, based on the information provided in Figure 9.6 (which I cannot see but am inferring based on common economic principles), would be where the monopolist can maximize the difference between total revenue and total cost. Choice A suggests a scenario that typically aligns with such economic principles, assuming it matches the MC=MR point on the figure referenced.

Figure 96 Figure 9