Figure 8.9 Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.The economically efficient output level is

Question

Figure 8.9  Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.The economically efficient output level is

Quizplus · Accepted Answer

The economically efficient output level is where the marginal cost equals the marginal benefit, which in a monopolistic market is where the marginal revenue equals the marginal cost. From the graph, we can see that the marginal revenue curve intersects the marginal cost curve at 940 units. This is the point where the monopolist will maximize profits while producing an economically efficient level of output. Therefore, the best choice is C) 940 units.

Figure 89 Figure 8