Table 14-17

-Refer to Table 14-17.If a monopolist faces a constant marginal cost of $1,how much output should the firm produce in order to equate marginal revenue with marginal cost?

Question

Table 14-17
 
-Refer to Table 14-17.If a monopolist faces a constant marginal cost of $1,how much output should the firm produce in order to equate marginal revenue with marginal cost?

Quizplus · Accepted Answer

To equate marginal revenue with marginal cost, the monopolist should produce where MR = MC. Given that the marginal cost is constant at $1, the firm should produce the quantity where the marginal revenue is also $1. According to the table, this occurs at 5 units.

Table 14-17 -Refer to Table 14-17.If a Monopolist Faces a Constant Marginal