Question 39 (1 point) D The price and quantity combination that maximizes short-

Question

Question 39 (1 point) D The price and quantity combination that maximizes short-run profnts for a monopolist is determined by 1 finding the quantity at which average revenue and average total cost are furthest apart. n finding the quantity at which marginal cost and marginal revenue are equal and then 2) using the demand curve to find price. and quantity that maximizes profits using the demand curve to find the appropriate quantity. a finding the point at which marginal revenue and demand intersect. This gives the price 3) 41 determining the price by finding the highest price at which sales can be made and then Save di e

Explanation / Answer

Answer : The correct option is 2.

Because for monopolist the equilibrium condition occurs at that point where MR (Marginal Revenue) = MC (Marginal Cost). The monopolist always charge higher price on equilibrium quantity level which is determined by using the market damand curve.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.