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 price charged at 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 price charged at the profit-maximising/loss-minimising output level is -.

Quizplus · Accepted Answer

The profit-maximizing output for a monopolist is where marginal cost (MC) equals marginal revenue (MR). At this output level, the price is determined by the demand curve. In the diagram, this price is $68.

Figure 83 Figure 8