A manufacturing firm is the sole seller of a specialized machine. The demand schedule for this product is shown in the table below.

$\begin{array} { | c | c | c | c | c | c | c | c | }
\hline \text { Price } & \$ 700000 & \$ 600000 & \$ 500000 & \$ 400000 & \$ 300000 & \$ 200000 & \$ 100000 \
\hline \begin{array} { c }
\text { Quantity } \
\text { Demanded }
\end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline
\end{array}$
-A monopolist will maximize profits by producing that output at which marginal cost is equal to:

Question

A manufacturing firm is the sole seller of a specialized machine. The demand schedule for this product is shown in the table below.

$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Price } & \$ 700000 & \$ 600000 & \$ 500000 & \$ 400000 & \$ 300000 & \$ 200000 & \$ 100000 \
\hline \begin{array} { c } 
\text { Quantity } \
\text { Demanded }
\end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 \
\hline
\end{array}$
-A monopolist will maximize profits by producing that output at which marginal cost is equal to:

Quizplus · Accepted Answer

A monopolist maximizes profits by producing at the output level where marginal cost (MC) is equal to marginal revenue (MR), not average cost, average revenue, average variable cost, or average fixed cost.

A Manufacturing Firm Is the Sole Seller of a Specialized