The figure below shows the cost and revenue curves for a monopolist. The profit-maximizing level of output and price for the monopolist are:
Figure 9.7

A)f units and $a.
B)g units and $c.
C)f units and $b.
D)f units and $d.
E)f units and $e.

Question

The figure below shows the cost and revenue curves for a monopolist. The profit-maximizing level of output and price for the monopolist are:​ ​
Figure 9.7
​

A)f units and $a. 
B)g units and $c. 
C)f units and $b. 
D)f units and $d. 
E)f units and $e.

Quizplus · Accepted Answer

The monopolist maximizes profit where MR=MC. In this case, that occurs at output level f. At that output level, the price charged is $d.

The Figure Below Shows the Cost and Revenue Curves for a Monopolist