Figure 8.3 Figure 8.3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 8.3.Suppose the monopolist represented in the diagram above produces positive output.The profit-maximising/loss-minimising output level is -.

Question

Figure 8.3  Figure 8.3 above shows the demand and cost curves facing a monopolist.
-Refer to Figure 8.3.Suppose the monopolist represented in the diagram above produces positive output.The profit-maximising/loss-minimising output level is -.

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal revenue equals marginal cost. In the diagram, this occurs at an output level of 630 units.

Figure 83 Figure 8