Exhibit 9-12 The profit-maximizing level of output and price for the nondiscriminating monopolist in Exhibit 9-12 are
A)f and $a
B)g and $c
C)f and $b
D)f and $d
E)f and $e

Question

Exhibit 9-12  The profit-maximizing level of output and price for the nondiscriminating monopolist in Exhibit 9-12 are
A)f and $a 
B)g and $c 
C)f and $b 
D)f and $d 
E)f and $e

Quizplus · Accepted Answer

The profit-maximizing level of output for a monopolist occurs where marginal revenue equals marginal cost, which in this case is at point f. From there, the monopolist charges the price on the demand curve corresponding to that level of output, which is $d. Therefore, the correct answer is D, "f and $d".

Exhibit 9-12 the Profit-Maximizing Level of Output and Price