indicate the point where a monopoly will set its output.
indicate the point where a monopoly will set its output.
Answer
Explanation:
Step1: Recall monopoly profit - maximization rule
A monopoly maximizes profit where marginal revenue (MR) equals marginal cost (MC).
Step2: Identify the intersection point on the graph
On the graph, find the point where the marginal - revenue curve (red) intersects the marginal - cost curve (green).
Answer:
The point where the marginal revenue curve and the marginal cost curve intersect.