The monopolists profit maximizing output is and the profit m

The monopolist\'s profit maximizing output is and the profit maximizing price is The deadweight loss at the profit maximizing level of output is The monopolist\'s profit at the profit maximizing level of output is: The socially efficient price and output combination is:

Solution

With a view to maximize profits, a producer will produce upto that quantity at which Marginal cost (MC) = Marginal revenue (MR). In other words, the profit maximising condition of a firm is MC = MR.

Q. 15) Profit maximising condition (MC = MR)

   MC will be equal to MR at the output 4 units and the price being $ 2.

   Conclusion:- Option A. 4; $ 2

Q. 17) The monopolist\'s profit at the profit maximizing level of output = 4 * 2

   = $ 8

  Conclusion:- Option C. $ 8