Refer to Figure 15-4. What price will the monopolist charge in order to maximize profit?

A) X
B) Z
C) B
D) C

Question

Refer to Figure 15-4. What price will the monopolist charge in order to maximize profit?A) XB) ZC) BD) C

Maddy Johnson · Accepted Answer

Final Answer : C, Explanation :  The monopolist will charge price C in order to maximize profit. At this price, the monopolist is producing output Qm and selling it at a price of Pm. The monopolist's profit is equal to the difference between total revenue and total cost, and at price C, the monopolist is earning the maximum possible profit.

Refer to Figure 15-4. What price will the monopolist charge in order to maximize profit?

A) X
B) Z
C) B
D) C

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Learning Objectives

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