The following figure shows revenue and cost curves of a monopolist. Figure 24.8 AR: Average revenue curve
MR: Marginal revenue curve
MC: Marginal cost curve
According to Figure 24.7, the profit maximizing price of the monopolist is:

Question

The following figure shows revenue and cost curves of a monopolist. Figure 24.8  AR: Average revenue curve
MR: Marginal revenue curve
MC: Marginal cost curve
According to Figure 24.7, the profit maximizing price of the monopolist is:

Quizplus · Accepted Answer

The profit maximizing price for a monopolist is the price where the marginal revenue equals marginal cost. In the given figure, MC intersects the MR curve at point P_2.. Therefore, the profit maximizing price for the monopolist is P_2..

The Following Figure Shows Revenue and Cost Curves of a Monopolist