The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁. In Figure 12-1,if the monopolist cannot price discriminate it will produce: A)Q₂ and sell at price P₁. B)Q₂ and sell at price P₂. C)Q₁ and sell at price P₁. D)Q₁ and sell at price P₂.

Question

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The Answer of The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁. In Figure 12-1,if the monopolist cannot price discriminate it will produce: A)Q₂ and sell at price P₁. B)Q₂ and sell at price P₂. C)Q₁ and sell at price P₁. D)Q₁ and sell at price P₂.

The Following Figure Shows the Downward Sloping Demand and Marginal