Figure 7.1:
-In Figure 7.1,at the profit maximizing level of output for a monopolist,marginal cost is:
A) $5.00.
B) $7.00.
C) $9.00.
D) Between $6.00 and $7.00.

Question

Figure 7.1:  
-In Figure 7.1,at the profit maximizing level of output for a monopolist,marginal cost is:
A) $5.00. 
B) $7.00. 
C) $9.00. 
D) Between $6.00 and $7.00.

Quizplus · Accepted Answer

At the profit-maximizing level of output for a monopolist, marginal cost is equal to marginal revenue. In Figure 7.1, marginal revenue is $5.00 at the profit-maximizing level of output.