Use the following to answer question 63-70.
Exhibit: Monopoly and Monopsony

-(Exhibit: Monopoly and Monopsony) In monopoly, _______ is determined by the point on the ________ curve that corresponds to the profit-maximizing quantity of output.

Question

Use the following to answer question 63-70.
Exhibit: Monopoly and Monopsony
 
-(Exhibit: Monopoly and Monopsony) In monopoly, _______ is determined by the point on the ________ curve that corresponds to the profit-maximizing quantity of output.

Quizplus · Accepted Answer

In a monopoly, the price is determined by the point on the demand curve that corresponds to the profit-maximizing quantity of output. The monopolist identifies the profit-maximizing quantity where marginal revenue (MR) equals marginal cost (MC), and then uses the demand curve to set the highest price consumers are willing to pay for that quantity.

Use the Following to Answer Question 63-70