-Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo,Oklahoma.The above figure represents the demand,marginal revenue,and marginal cost curves for this establishment.What quantity will the Busy Bee produce to maximize its profit?
A) 20 hamburgers per hour
B) 30 hamburgers per hour
C) 50 hamburgers per hour
D) 0 hamburgers per hour.
E) 10 hamburgers per hour

Question

-Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo,Oklahoma.The above figure represents the demand,marginal revenue,and marginal cost curves for this establishment.What quantity will the Busy Bee produce to maximize its profit?
A) 20 hamburgers per hour 
B) 30 hamburgers per hour 
C) 50 hamburgers per hour 
D) 0 hamburgers per hour. 
E) 10 hamburgers per hour

Quizplus · Accepted Answer

The profit-maximizing quantity is where marginal revenue equals marginal cost. In this case, that occurs at a quantity of 20 hamburgers per hour.

-Suppose the Busy Bee Café Is the Monopoly Producer of Hamburgers