Question: a - How does the monopolist determine the production levelthat will maximize profits? (Meaning what determines the quantity that the monopolist will produce?) b -

a - How does the monopolist determine the production levelthat will maximize profits? (Meaning what determines the quantity that the monopolist will produce?)

b - At this quantity howdoes the monopolist determine the price to charge in the market?

1.800 Marginal cost Marginal Cost Marginal Revenue 1,600 1,400 Total profit 1,200 Average cost 1,000 800 600 400 Demand 200 Marginal revenue -200 NO 09 5 6 9 Quantity

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2. In this chapter, the reader should reflect on the following concepts: