When considering the graph, economic profits are maximized at an output level of ______ and at a price of _______.
a. | Q3; P1 | b. | Q2; P2 |
---|---|---|---|
c. | Q4; P1 | d. | Q1; P4 |
This is a monopoly market and in the monopoly market the profits are maximized where marginal revenue equals the marginal cost. In this graph the profit maximizing level of output is Q1 and the price is P4.
Ans: d). Q1;P4.
When considering the graph, economic profits are maximized at an output level of ______ and at...
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