Question

What is the profit-maximizing level of output for the non-discriminating monopolist?

Answer 1

The profit-maximizing price and output for this non-discriminatory monopoly are $4 and 7 units, respectively. A monopoly that maximizes the profit of producing in the short term will: increase production as long as the marginal return exceeds the marginal cost of producing that unit.

A discriminatory monopolist charges different consumers different prices, while a non-discriminatory monopolist charges all consumers the same price. In a non-discriminatory monopoly, demand determines the price and, ultimately, the price consumers are willing to pay.

The non-discriminatory monopolist found a marginal revenue of $23 and a marginal cost of $30 at the current level of production. To maximize profits, you need to raise prices and produce less.

Learn more about profit-maximizing here: brainly.com/question/13464288

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