Use the following to answer question:
Figure: A Profit-Maximizing Monopoly Firm
-(Figure: A Profit-Maximizing Monopoly Firm)Use Figure: A Profit-Maximizing Monopoly Firm.This firm's price per unit is:
A)$20.
B)$25.
C)$30.
D)$35.

Question

Use the following to answer question:
Figure: A Profit-Maximizing Monopoly Firm 
-(Figure: A Profit-Maximizing Monopoly Firm)Use Figure: A Profit-Maximizing Monopoly Firm.This firm's price per unit is:
A)$20. 
B)$25. 
C)$30. 
D)$35.

Quizplus · Accepted Answer

The firm maximizes profit by producing at the output level where marginal revenue equals marginal cost, which is 10 units in this case. At this output level, the price per unit is $30.

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