Figure 8.9 Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.At the profit-maximising quantity,the difference between the monopoly's price and the marginal cost of production is -.

Question

Figure 8.9  Figure 8.9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.9.At the profit-maximising quantity,the difference between the monopoly's price and the marginal cost of production is -.

Quizplus · Accepted Answer

In a monopoly, the profit-maximizing quantity is where marginal cost (MC) equals marginal revenue (MR). The price is set above this point on the demand curve, leading to a price that is higher than the marginal cost. The difference given in the options is $21.

Figure 89 Figure 8