Graph 15-2 This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.Profit will be maximised by charging a price equal to:
A)P₀
B)P₁
C)P₂
D)P₃

Question

Graph 15-2  This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.Profit will be maximised by charging a price equal to:
A)P₀ 
B)P₁ 
C)P₂ 
D)P₃

Quizplus · Accepted Answer

Profit is maximized when marginal cost equals marginal revenue. At point A, marginal cost equals marginal revenue, so profit is maximized.

Graph 15-2 This Graph Reflects the Cost and Revenue