(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.The profit-maximizing price for a monopolist is:

A) $800.
B) $200.
C) $600.
D) $1,000.

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Anjon Aragones · Accepted Answer

Final Answer : C, Explanation :  The profit-maximizing output for a monopolist is the quantity at which MR=MC. In this case, MR=$800-$1.6Q and MC=$200. Setting MR=MC, we get $800-$1.6Q=$200$, or Q=375. Substituting this into the demand function, we get P=$800-1.6(375)=$600. Therefore, the profit-maximizing price is $600.

(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.The profit-maximizing price for a monopolist is:

A) $800.
B) $200.
C) $600.
D) $1,000.

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(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.The profit-maximizing price for a monopolist is:A) $800.B) $200.C) $600.D) $1,000.

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Related questions

(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.The profit-maximizing price for a monopolist is:

A) $800.
B) $200.
C) $600.
D) $1,000.