Refer to Figure 15-4. How much output will the monopolist produce in order to maximize profit?

A) 0
B) N
C) O
D) P

Question

Refer to Figure 15-4. How much output will the monopolist produce in order to maximize profit?A) 0B) NC) OD) P

Georgia Menke · Accepted Answer

Final Answer : C, Explanation :  The monopolist will produce output level O in order to maximize profit. This is because at output level O, the marginal revenue curve (MR) intersects the marginal cost curve (MC), which means that the monopolist is producing the quantity of output where the additional revenue from selling one more unit is equal to the additional cost of producing that unit.

Refer to Figure 15-4. How much output will the monopolist produce in order to maximize profit?

A) 0
B) N
C) O
D) P

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Learning Objectives

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