The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Refer to Table 11.4. Assuming that the monopolist is maximizing profits, the price the monopolist will charge is _____.
A)$13
B)$14
C)$12
D)$16
E)$15

Question

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4
 
-Refer to Table 11.4. Assuming that the monopolist is maximizing profits, the price the monopolist will charge is _____.
A)$13 
B)$14 
C)$12 
D)$16 
E)$15

Quizplus · Accepted Answer

The monopolist will charge $13 because this is the price that maximizes profits. At this price, the monopolist is selling 4 units of output and making a profit of $12.

The Table Given Below Shows the Price, Marginal Revenue and Marginal