For the monopoly represented by the figure to the right, at what quantity is its revenue...

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Answer 1

Answer #1

The revenue is maximized at the point where the marginal revenue equals zero, in this diagram the revenue is maximized at the quantity of 15. This is shown by the below graph.

Revenue maximization Price MR 15 Quantity revenue

The green shaded area in the upper graph shows the revenue maximization and the lower graph shows the corresponding revenue curve.

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Answer 2

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