Q7 Figure: A Profit-Maximizing Monopoly FirmPrice, marginalrevenue, marginalcost, averagetotal cost$35ATC29MC2618MR160 220 250 300Quantity of output (per week)Reference: Ref 14-2When the monopolist maximizes profit, the profit per unit will beO A. ($35 - $20)B. ($20 - $15)C. ($29 - $16)D. ($29 - $8)E. ($26 - $15)

A monopolist will maximise profit at a point where marginal revenue is equal to marginal cost.

igure: A Profit-Maximizing Monopoly Firm Price, marginal evenue, marginal cost, average total cost $35 ATC 29 MC 26 16 15 8 MR 160 220 250 300 Quantity of output (per week) eference: Ref 14-2 /hen the monopolist maximizes profit, the profit per unit willt OA. ($35 - $20) O B. ($20 - $15) D C. ($29 - $16) O D. ($29 - $8)

igure: A Profit-Maximizing Monopoly Firm Price, marginal evenue, marginal cost, average total cost $35 ATC 29 MC 26 16 15 8 MR 160 220 250 300 Quantity of output (per week) eference: Ref 14-2 /hen the monopolist maximizes profit, the profit per unit willt OA. ($35 - $20) O B. ($20 - $15) D C. ($29 - $16) O D. ($29 - $8)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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