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Figure: Maximize Monopoly Profits
-(Figure: Maximize Monopoly Profits) Refer to the figure. The monopolist will maximize its profit by charging a price equal to:

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Use the following to answer questions:
Figure: Maximize Monopoly Profits

-(Figure: Maximize Monopoly Profits) Refer to the figure. The monopolist will maximize its profit by charging a price equal to:

Quizplus · Accepted Answer

A monopolist maximizes profit where marginal cost (MC) equals marginal revenue (MR). At this point, the monopolist will charge the highest price consumers are willing to pay, which corresponds to the demand curve at that quantity, typically shown as P₂ in such diagrams.

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