Narrbegin Exhibit 8.3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
-As shown in Exhibit 8.3, in order to maximise its profit, what price should GeneTech charge for its vaccine?
A) $20 per dose.
B) $25 per dose.
C) $35 per dose
D) $50 per dose.

Question

Narrbegin Exhibit 8.3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine  
-As shown in Exhibit 8.3, in order to maximise its profit, what price should GeneTech charge for its vaccine?
A) $20 per dose. 
B) $25 per dose. 
C) $35 per dose 
D) $50 per dose.

Quizplus · Accepted Answer

Without seeing Exhibit 8.3, we can't provide a specific analysis based on the given data. However, in general, the price that maximizes profit is determined by the intersection of the marginal cost and marginal revenue curves. This price reflects the highest possible profit margin before additional production costs outweigh the revenue generated by selling additional units.