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A-Level Economics · Monopoly (supernormal profit) diagram question

The monopolist is a profit maximiser. Which point does it choose?

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The diagram

The answer

Point C. MR = MC at point C: quantity 3. Every unit up to there adds more revenue than it adds cost. Profit is maximised where the last unit adds exactly as much revenue as cost — MR = MC, point C, quantity 3. Find the OUTPUT first. The price is a separate reading.

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