Answered: Refer to the graph shown. Assuming that…

Refer to the graph shown. Assuming that this monopolist maximizes profit, the marginal cost of its last unit of output will be: O $16. O $10. $12. O $8.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 24RQ: How does the quantity produced and price charged by a monopolist compare to that of a perfectly...

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Question

Price
οι οιοιο
$20
$18
$16
$14
$12
$10
$8
O $8.
$0
MC
0
300 600 700 800
Quantity per day
Refer to the graph shown. Assuming that this monopolist maximizes profit, the marginal cost of its
last unit of output will be:
O $16.
O $10.
$12.
AC
D

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