Figure 15-7
-Refer to Figure 15-7. In order to maximize profits, the monopolist should charge a price of
A)$9.
B)$12.
C)$20.
D)$23.

Question

Figure 15-7 
-Refer to Figure 15-7. In order to maximize profits, the monopolist should charge a price of
A)$9. 
B)$12. 
C)$20. 
D)$23.

Quizplus · Accepted Answer

The monopolist should charge the price where the marginal revenue (MR) equals marginal cost (MC). Based on the graph, the MC is $10, and the MR is $20 at the quantity where the demand curve intersects with the marginal revenue curve. This occurs at a price of $20. Therefore, the monopolist should charge a price of $20 to maximize their profits.

Figure 15-7 -Refer to Figure 15-7. in Order to Maximize Profits, the Maximize