(Figure: The Profit-Maximizing Output and Price) Look at the figure The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.The profit- maximizing output for a monopolist is:
A)0.
B)8.
C)16.
D)20.

Question

Quizplus · Accepted Answer

The profit-maximizing output for a monopolist is where marginal cost (MC) equals marginal revenue (MR). In this case, MC = AC = $200, so the profit-maximizing output is where MR = $200. The graph shows that MR = $200 at an output of 8 units.

(Figure: the Profit-Maximizing Output and Price) Look at the Figure