-Refer to Figure 9-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit-maximising/loss-minimising output level?
A) 630 units
B) 800 units
C) 850 units
D) 880 units

Question

-Refer to Figure 9-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit-maximising/loss-minimising output level?
A) 630 units 
B) 800 units 
C) 850 units 
D) 880 units

Quizplus · Accepted Answer

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