A monopolist produces 14,000 units of output and charges $14 per unit. Its MR is $10, its MC is $10, its ATC is $12 and AVC is $9, then this firm in order to maximize its profit, it should produce where: Select one: a. AVC equals price. b. MC equals price. c. ATC equals price. d. MR equals MC.

A monopolist produces 14,000 units of output and charges $14 per unit. Its MR is $10, its MC is $10, its ATC is $12 and AVC is $9, then this firm in order to maximize its profit, it should produce where: Select one: a. AVC equals price. b. MC equals price. c. ATC equals price. d. MR equals MC.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 19SQ

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Question

A monopolist produces 14,000 units of output and charges $14 per unit. Its MR is $10, its MC is $10, its ATC is $12 and AVC is $9, then this firm in
order to maximize its profit, it should produce where:
Select one:
a. AVC equals price.
b. MC equals price.
c. ATC equals price.
d. MR equals MC.

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