Use the following to answer questions:
Figure: Monopoly 8
-(Figure: Monopoly 8) The natural monopolist in this figure would produce:
A) 9 units of output.
B) 10 units of output.
C) 14 units of output.
D) 17.5 units of output.

Question

Use the following to answer questions:
Figure: Monopoly 8 
-(Figure: Monopoly 8) The natural monopolist in this figure would produce:
A) 9 units of output. 
B) 10 units of output. 
C) 14 units of output. 
D) 17.5 units of output.

Quizplus · Accepted Answer

The natural monopolist would produce at the point where marginal cost (MC) equals marginal revenue (MR). In this figure, that point is at 9 units of output.

Use the Following to Answer Questions