Scenario 14-3
A monopoly firm maximizes its profit by producing Q = 500 units of output.At that level of output,its marginal revenue is $30,its average revenue is $60,and its average total cost is $34.
-Refer to Scenario 14-3.At Q = 500,the firm's marginal cost is

Question

Quizplus · Accepted Answer

In a monopoly, profit maximization occurs where marginal cost (MC) equals marginal revenue (MR). Since the marginal revenue is $30 at Q = 500, the marginal cost must also be $30.

Scenario 14-3 A Monopoly Firm Maximizes Its Profit by Producing Q =