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Question 37 (Mandatory) (5 points) MC 18 ATC 15 AVC 12 Price (1) 10 6 0...

Question

Question 37 (Mandatory) (5 points) MC 18 ATC 15 AVC 12 Price (1) 10 6 0...

Question 37 (Mandatory) (5 points) MC 18 ATC 15 AVC 12 Price (1) 10 6 0 200 300 350 MR Quantity Reference: Ref 25-4 In the fi

Question 37 (Mandatory) (5 points) MC 18 ATC 15 AVC 12 Price (1) 10 6 0 200 300 350 MR Quantity Reference: Ref 25-4 In the figure above, the profit-maximizing short-run output and price for this monopolist is A) 300 and $12 B) 200 and $15. C) 200 and $6 D) O and $0.

Answers

As we know, a monopolist will produce at that level where marginal revenue curve intersect the marginal cost curve. Therefore, the profit maximising short run output will be 200 units and the associated price level will be $15. So, the right answer is option B.


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