Table 15-19
A monopolist faces the following demand curve:
-Refer to Table 15-19. If a monopolist faces a constant marginal cost of $5, how much output should the firm produce in order to equate marginal revenue with marginal cost?
A)3 units
B)4 units
C)5 units
D)6 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 $5, how much output should the firm produce in order to equate marginal revenue with marginal cost?
A)3 units 
B)4 units 
C)5 units 
D)6 units

Quizplus · Accepted Answer

To equate marginal revenue with marginal cost, the monopolist should produce the quantity where marginal revenue equals $5. Based on the table, this occurs at 4 units.

Table 15-19 A Monopolist Faces the Following Demand Curve