What price and quantity will this single price monopolist charge?

Choose 1 answer:
(A) $P_{H} ; Q_{Y}$
(B) $P_{G} ; Q_{Y}$
(C) $P_{H} ; Q_{X}$
(D) $P_{F} ; Q_{X}$

Question

What price and quantity will this single price monopolist charge?

Choose 1 answer:
(A) $P_{H} ; Q_{Y}$
(B) $P_{G} ; Q_{Y}$
(C) $P_{H} ; Q_{X}$
(D) $P_{F} ; Q_{X}$

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Monopoly: A monopoly is a market structure where a single firm is the sole producer of a product with no close substitutes. ‖ ‖ b ⋮ Profit Maximization: A monopolist maximizes profit where marginal revenue (MR) equals marginal cost (MC). ‖ ‖ c ⋮ Identifying Quantity: From the graph, the quantity where MR intersects MC is $Q_X$. ‖ ‖ d ⋮ Identifying Price: The price corresponding to $Q_X$ on the demand curve is $P_H$. ‖ ∻Answer∻ ⚹ (C) $P_{H} ; Q_{X}$ ⚹ ∻Key Concept∻ ⚹ A monopolist sets the quantity where MR = MC and the price from the demand curve at that quantity. ⚹ ∻Explanation∻ ⚹ The monopolist will produce at the quantity $Q_X$ where MR intersects MC and charge the price $P_H$ from the demand curve at that quantity. ⚹◊What are the factors that influence the pricing decision of a single price monopolist in microeconomics⍭ Generate me a similar question◊

Sia