Use the following to answer questions:
Figure: Monopolist
-(Figure: Monopolist) Refer to the figure. Based on the demand curves for a monopolist's product in two different markets-Market A and Market B-what price should the monopolist charge in Market B?
A) $9
B) $5
C) $7
D) any price higher than $5

Question

Use the following to answer questions:
Figure: Monopolist 
-(Figure: Monopolist) Refer to the figure. Based on the demand curves for a monopolist's product in two different markets-Market A and Market B-what price should the monopolist charge in Market B?
A) $9 
B) $5 
C) $7 
D) any price higher than $5

Quizplus · Accepted Answer

The monopolist should charge $9 in Market B because that is the price at which the marginal revenue curve intersects the demand curve.

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