hello, how is doing everybody
could somebody please give me a hand

the blue line represents the demand
the red line represents the marginal cost
and the orange line represents the marginal revenue

There's a theory in economics which says a monopolist will maximizes profits by choosing the level where marginal revenue equal marginal cost, marginal revenue is the change in total revenue as result of producing one more unit of out, and marginal cost the change in total cost as result of producing one more unit of output.

the question is. If the goal of the monopolist is to maximize profit, how many units will it produce and at what price will charge each unit? ( according to the graph )

2. Originally Posted by jhonwashington
hello, how is doing everybody
could somebody please give me a hand

the blue line represents the demand
the red line represents the marginal cost
and the orange line represents the marginal revenue

There's a theory in economics which says a monopolist will maximizes profits by choosing the level where marginal revenue equal marginal cost, marginal revenue is the change in total revenue as result of producing one more unit of out, and marginal cost the change in total cost as result of producing one more unit of output.

the question is. If the goal of the monopolist is to maximize profit, how many units will it produce and at what price will charge each unit? ( according to the graph )

If the monopolist prices his widget at $4 he will sell 3000 units, the cost of producing the 3001-st unit will be an additional$4 which is equal to his