The following figure shows the demand and marginal revenue (MR) curves faced by

Question

The following figure shows the demand and marginal revenue (MR) curves faced by a monopolist. Price/Cost Quantity Refer to the figure above. What is the profit-maximizing quantity that the monopolist should produce if it faces a constant marginal cost of $3? A. 300 units O B. 200 units ?. 600 units OD, 400 units Click to select your answer. ws an important consequence of a progressive average taxes and higher marginal taxes." tax system: the rich earn a high share of the national income but pay even a higher share of total taxes. For example, the richest

Explanation / Answer

A monopolist maximizes their profit at MR=MC. Here quantity is produced 300 units at MR=MC=$3

Option a is correct.

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