Use the following to answer question(s): Short-Run Monopoly

-(Exhibit: Short-Run Monopoly) The marginal cost of producing the profit-maximizing quantity is cost:
A) N.
B) O.
C) P.
D) Q.

Question

Use the following to answer question(s): Short-Run Monopoly
 
-(Exhibit: Short-Run Monopoly) The marginal cost of producing the profit-maximizing quantity is cost:
A) N. 
B) O. 
C) P. 
D) Q.

Quizplus · Accepted Answer

To determine the profit-maximizing quantity, we look for the intersection of the marginal revenue curve (MR) and marginal cost curve (MC). In this exhibit, the MR curve intersects the MC curve at point P. Therefore, the marginal cost of producing the profit-maximizing quantity is cost P.

Use the Following to Answer Question(s): Short-Run Monopoly