Question 8
POST_UTME_NILE_UNIVERSITY
•
2022
•
ECONOMICS
•
objective
A monopolist faces a demand curve and has a cons\tant marginal \cost of production. If the monopolist's marginal revenue is equal to its marginal \cost, what is the optimal price and quantity of output?
Answer Options
A.
The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
B.
The optimal price is the lowest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
Correct Answer
C.
The optimal price is the price at which the demand curve intersects the marginal revenue curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
D.
The optimal price is the highest price on the demand curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal revenue curve.
Correct Answer
C
Correct Option:
The optimal price is the price at which the demand curve intersects the marginal revenue curve, and the optimal quantity is the quantity at which the demand curve intersects the marginal \cost curve.
About This Question
This is
Post Utme Nile University
2022
Economics
Question 8.
It is one of the
objective
questions from the
2022
Post Utme Nile University
Economics
examination.