Question: Please explain why is there no marginal production costs in this diagram and please explain the diagram as well, thanks ! Monopoly Stackelberg D Bertrand/

Please explain why is there no marginal production costs in this diagram and please explain the diagram as well, thanks !

Monopoly Stackelberg D Bertrand/ Perfect competition FIGURE 14.15 Comparing Equilibrium Price and Quantity The monopolist would maximize prot where marginal revenue equals zero, since there are no marginal production costs. The equilibrium price will be higher, and the equilibrium quantity lower, than in the Cournot case

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