Graph 15-2 This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.The marginal-revenue curve for a monopoly firm is depicted by curve:
A)A
B)B
C)C

Question

Graph 15-2  This graph reflects the cost and revenue structure for a monopoly firm.Use the graph to answer the following question(s).
-Refer to Graph 15-2.The marginal-revenue curve for a monopoly firm is depicted by curve:
A)A 
B)B 
C)C

Quizplus · Accepted Answer

The best choice for a monopoly firm is where marginal revenue (MR) equals marginal cost (MC), which is at output level Q2. At this output level, the monopoly firm can maximize its profit by producing and selling Q2 quantity at price P2. The marginal-revenue curve for a monopoly firm is represented by curve B. Therefore, the best choice for the monopoly firm is output level Q2 at price P2, which is where curve B intersects with the MC curve.

Graph 15-2 This Graph Reflects the Cost and Revenue