Use the following to answer question:
Figure: Short-Run Monopoly
-(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The profit-maximizing quantity of output is quantity:
A)Q.
B)R.
C)S.
D)T.

Question

Use the following to answer question:
Figure: Short-Run Monopoly 
-(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The profit-maximizing quantity of output is quantity:
A)Q. 
B)R. 
C)S. 
D)T.

Quizplus · Accepted Answer

The profit-maximizing quantity of output is where marginal revenue equals marginal cost, which is at point R in the graph. At this point, the monopolist will charge a price of P and produce a quantity of Q. At any other point, the monopolist would either be producing too much or too little output, resulting in lower profits.

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