The monopolist would charge a price of _______ in market B in order to maximize profits:

Question

Quizplus · Accepted Answer

To provide an accurate answer to the question of what price a monopolist would charge in market B to maximize profits, we would need additional information about market B, such as the demand curve, cost structure, and competitive dynamics. Without this information, it is impossible to determine the profit-maximizing price. However, the question seems to have a formatting issue, as options C and B both list the price as "8," and option D lists "0," which is typically not a viable price for a monopolist looking to maximize profits (unless the strategy involves a loss leader or similar approach). Option A lists the price as "29," which could be the profit-maximizing price if the demand at that price allows the monopolist to earn the highest possible total profit.
In a typical scenario, a monopolist determines the profit-maximizing price by analyzing the point where marginal revenue (MR) equals marginal cost (MC). The price is then set above this equilibrium point on the demand curve to maximize the total profit.
Without specific data, we cannot determine the correct answer. If you can provide the demand and cost information for market B, I could help you calculate the profit-maximizing price.

The Monopolist Would Charge a Price of _______ in Market