Figure 8-9 Figure 8-9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8-9.What is the economically efficient output level?

Question

Figure 8-9  Figure 8-9 shows the demand and cost curves for a monopolist.
-Refer to Figure 8-9.What is the economically efficient output level?

Quizplus · Accepted Answer

The economically efficient output level is where marginal cost equals marginal revenue, which occurs at Q = 940 units. This output level maximizes economic surplus (consumer surplus + producer surplus) and allocates resources efficiently. Therefore, the best choice is to produce at the output level of Q = 940 units.

Figure 8-9 Figure 8-9 Shows the Demand and Cost