Table 15-1
-Refer to Table 15-1. If the monopolist wants to maximize its revenue, how many units of its product should it sell?
A)4
B)5
C)6

Question

Table 15-1 
-Refer to Table 15-1. If the monopolist wants to maximize its revenue, how many units of its product should it sell?
A)4 
B)5 
C)6

Quizplus · Accepted Answer

To maximize revenue, a monopolist should produce where marginal revenue (MR) equals zero. In many cases, this occurs at the midpoint of the demand curve, which is often around the quantity where the price elasticity of demand is unitary. Without the specific table data, typically, this is around the middle quantity, which is often 6 in such examples.

Table 15-1 -Refer to Table 15-1. If the Monopolist Wants to Maximize