The table given below shows the prices charged and marginal cost incurred by a monopolist for different units of output.Table 11.3

-If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
A)The price given by the marginal-revenue curve at that level of output.
B)The price given by the marginal-cost curve at that level of output.
C)The price given by the average-cost curve at that level of output.
D)The price given by the average-revenue curve at that level of output.
E)The price given by the total revenue curve at that level of output.

Question

The table given below shows the prices charged and marginal cost incurred by a monopolist for different units of output.Table 11.3
 
-If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
A)The price given by the marginal-revenue curve at that level of output. 
B)The price given by the marginal-cost curve at that level of output. 
C)The price given by the average-cost curve at that level of output. 
D)The price given by the average-revenue curve at that level of output. 
E)The price given by the total revenue curve at that level of output.

Quizplus · Accepted Answer

A monopolist determines the profit-maximizing level of output where marginal revenue equals marginal cost, and then charges the highest price consumers are willing to pay for that quantity, which is found on the demand curve (average revenue curve) at that level of output.

The Table Given Below Shows the Prices Charged and Marginal