The profit-maximizing price and quantity of the monopolist compared to the perfectly competitive industry in the above figure are, respectively
A) A and B.
B) A and C.
C) A and F.
D) C and F.

Question

Quizplus · Accepted Answer

In a monopolistic market, the profit-maximizing quantity and price are determined where the marginal cost (MC) intersects the marginal revenue (MR), which is at point F for quantity and point A for price. This differs from a perfectly competitive market, where price equals marginal cost at a higher quantity and potentially a lower price point.

The Profit-Maximizing Price and Quantity of the Monopolist Compared to the Perfectly