Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost.Below is the market demand and marginal revenue curves for the product.
Refer to the figure above.The profit-maximizing quantity for a monopolist with this demand curve is _____ units,which the monopolist would sell for ______.
A)3,000;$1.00
B)1,000;$1.50
C)2,000;$1.50
D)1,000;$2.50

Question

Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost.Below is the market demand and marginal revenue curves for the product. 
Refer to the figure above.The profit-maximizing quantity for a monopolist with this demand curve is _____ units,which the monopolist would sell for ______.
A)3,000;$1.00 
B)1,000;$1.50 
C)2,000;$1.50 
D)1,000;$2.50

Quizplus · Accepted Answer

When marginal cost is zero,MC = MR when quantity is 2000.The price on the demand curve that corresponds with this quantity is $1.50.

Quick Buck and Pushy Sales Produce and Sell Identical Products