The Monopolist Determines the Price and Quantity Combination That Maximizes

question 29

Multiple Choice

The monopolist determines the price and quantity combination that maximizes short-run profits by

• A) finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price.
• B) determining the price by finding the highest price at which sales can be made and then using the demand curve to find the appropriate quantity.
• C) finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits.
• D) finding the quantity at which average revenue and average total cost are furthest apart.