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Figure: Short-Run Monopoly
-(Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly. The marginal cost of producing the profit-maximizing quantity is cost:
A) N.
B) O.
C) P.
D) Q.

Question

Use the following to answer questions:
Figure: Short-Run Monopoly 
-(Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly. The marginal cost of producing the profit-maximizing quantity is cost:
A) N. 
B) O. 
C) P. 
D) Q.

Quizplus · Accepted Answer

The profit-maximizing quantity for a monopoly is where marginal cost (MC) equals marginal revenue (MR). In the figure, this occurs at point P.

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