Figure 15-9
-Refer to Figure 15-9. To maximize its profit, a monopolist would choose which of the following outcomes?
A)100 units of output and a price of $20 per unit
B)100 units of output and a price of $40 per unit
C)150 units of output and a price of $30 per unit
D)200 units of output and a price of $40 per unit

Question

Figure 15-9 
-Refer to Figure 15-9. To maximize its profit, a monopolist would choose which of the following outcomes?
A)100 units of output and a price of $20 per unit 
B)100 units of output and a price of $40 per unit 
C)150 units of output and a price of $30 per unit 
D)200 units of output and a price of $40 per unit

Quizplus · Accepted Answer

A monopolist maximizes profit by producing the quantity where marginal revenue equals marginal cost and then charging the highest price consumers are willing to pay for that quantity. Without the figure, option B is the most likely choice as it suggests a higher price per unit for the same quantity, which typically aligns with monopolistic pricing strategies.

Figure 15-9 -Refer to Figure 15-9. to Maximize Its Profit, a Monopolist