-A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.At what price will this firm sell the output?
A) $19
B) $38
C) $285
D) $570
E) There is not enough information given to answer the question.

Question

-A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.At what price will this firm sell the output?
A) $19 
B) $38 
C) $285 
D) $570 
E) There is not enough information given to answer the question.

Quizplus · Accepted Answer

The firm will sell the output at the price on the demand curve, which is $38, as monopolies set their output where marginal revenue equals marginal cost and then charge the highest price consumers are willing to pay for that quantity, indicated by the demand curve.

-A Single-Price Monopoly Has Marginal Revenue and Marginal Cost Equal