Figure 16-4
-Refer to Figure 16-4.Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price.What is the profit maximizing quantity produced and what is the price charged?
A) Q = 240 units; P = $28
B) Q = 320 units; P = $24
C) Q = 480 units; P = $16
D) Q = 560 units; P = $12

Question

Figure 16-4 
-Refer to Figure 16-4.Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price.What is the profit maximizing quantity produced and what is the price charged?
A) Q = 240 units; P = $28 
B) Q = 320 units; P = $24 
C) Q = 480 units; P = $16 
D) Q = 560 units; P = $12

Quizplus · Accepted Answer

The profit-maximizing quantity for a monopolist is where marginal cost (MC) equals marginal revenue (MR). The corresponding price is found on the demand curve at this quantity.

Figure 16-4 -Refer to Figure 16-4.Suppose the Firm Represented in the Diagram