Table 15-19
A monopolist faces the following demand curve:
-Refer to Table 15-19. If a monopolist faces a constant marginal cost of $9, how much output should the firm produce?
A)2 units
B)3 units
C)4 units
D)5 units

Question

Table 15-19
A monopolist faces the following demand curve: 
-Refer to Table 15-19. If a monopolist faces a constant marginal cost of $9, how much output should the firm produce?
A)2 units 
B)3 units 
C)4 units 
D)5 units

Quizplus · Accepted Answer

The monopolist should produce where marginal cost equals marginal revenue. If the marginal cost is constant at $9, the firm should produce the quantity where marginal revenue is also $9.

Table 15-19 A Monopolist Faces the Following Demand Curve