select the correct answer.\nthe graph represents price and output quantities under a monopoly. what price…

select the correct answer.\nthe graph represents price and output quantities under a monopoly. what price will the monopolist firm set?\na. $5\nb. $10\nc. $15\nd. $20

select the correct answer.\nthe graph represents price and output quantities under a monopoly. what price will the monopolist firm set?\na. $5\nb. $10\nc. $15\nd. $20

Answer

Brief Explanations:

A monopolist maximizes profit where marginal cost (MC) equals marginal revenue (MR). Then, it sets the price based on the demand curve at that output - level. In the graph, the MC and MR curves intersect at an output level. The price corresponding to that output level on the demand curve is $15.

Answer:

C. $15