What two curves' intersection determines the monopolist's profit-maximizing quantity of output
A)marginal cost and demand
B)marginal cost and marginal revenue
C)average total cost and price
D)average variable cost and average revenue

Question

Quizplus · Accepted Answer

To determine the monopolist's profit-maximizing quantity of output, we need to find the point where marginal cost = marginal revenue. Therefore, the two curves whose intersection determines the monopolist's profit-maximizing quantity of output are the marginal cost curve and the marginal revenue curve. This is because, at the output level where these two curves intersect, the monopolist is producing at the point where the last unit of output produced provides the same marginal benefit as the marginal cost of producing it. This leads to the maximum possible profit for the monopolist.

What Two Curves' Intersection Determines the Monopolist's Profit-Maximizing Quantity of Output