A monopolist’s profit-maximizing price and output correspond to the point on a graph where total costs are the smallest relative to price. where average total cost is minimized. where price is as high as possible. where marginal revenue equals marginal cost and charging the price on the market demand curve for that output.
AnswerCorrect option (D).
A monopolist maximizes profit by equating marginal revenue with marginal cost, so in the graph, profit maximizing price and output corresponds to intersection or MR and MC curves.