Exhibit 9.5

-Refer to Exhibit 9.5,which shows the cost and revenue curves for a monopolist.Assume that the monopolist does not shut down production in the short run.The profit-maximizing price and output for this non-price discriminating monopolist are _____

Question

Exhibit 9.5

-Refer to Exhibit 9.5,which shows the cost and revenue curves for a monopolist.Assume that the monopolist does not shut down production in the short run.The profit-maximizing price and output for this non-price discriminating monopolist are _____

Quizplus · Accepted Answer

The profit-maximizing output for a monopolist is determined where marginal cost (MC) equals marginal revenue (MR). At this point, the monopolist will then charge the highest price consumers are willing to pay for that quantity, which can be found by going up to the demand curve. Without seeing Exhibit 9.5, the correct answer typically involves selecting the price and quantity where MR=MC and then using the demand curve to find the price. Since I can't see the exhibit, the explanation is based on standard economic theory.

Exhibit 9.5 -Refer to Exhibit 9.5,which Shows the Cost and Revenue Curves