Question

DI Question 3 1 pts A monopoly's demand curve is O vertical. O downward-sloping. O horizontal. O upward-sloping D Question 4 1 pts A monopolist is able to maximize its profits by D setting the price at the level that will maximize its pfer unit proft. setting output at MR - MC and setting price at the demand curve's highest point. producing output where MR - MC and charging the price corresponding to that output level on the demand curve producing maximum output where price is equal to its marginal cost.

Answer 1

Ans. 3 b) downward - sloping

A monopoly firm faces a downward sloping demand curve because it charges higher prices than the efficient market ( perfect competition) so monopoly will charge lower price if increases the output level.

Ans. 4 c) producing output level where MR = MC and charging the price corresponding to that output level on the demand curve

A monopoly firm's maximization level is where MR = MC, at this level monopoly produces that output level which maximizes profit and charges the price that corresponds to that output level on the demand curve