-According to the above figure, the profit maximizing price-output combination for the monopolist is a price of
A) 50 cents and an output of 40,000 newspapers per day.
B) 30 cents and an output of 30,000 newspapers per day.
C) 60 cents and an output of 30,000 newspapers per day.
D) 45 cents and an output of 45,000 newspapers per day.

Question

-According to the above figure, the profit maximizing price-output combination for the monopolist is a price of
A) 50 cents and an output of 40,000 newspapers per day. 
B) 30 cents and an output of 30,000 newspapers per day. 
C) 60 cents and an output of 30,000 newspapers per day. 
D) 45 cents and an output of 45,000 newspapers per day.

Quizplus · Accepted Answer

A monopolist maximizes profit where marginal revenue (MR) equals marginal cost (MC). Without seeing the figure, the correct answer typically involves selecting the option where the price is higher than marginal cost, reflecting the monopolist's ability to set prices above marginal costs to maximize profits. Among the given choices, option C suggests a higher price point, which could align with monopolistic pricing strategies to maximize profits, assuming MR=MC occurs at an output of 30,000 newspapers per day. However, without the figure, this explanation is based on typical economic principles of monopoly behavior rather than specific data.

-According to the Above Figure, the Profit Maximizing Price-Output Combination