Question

What is the highest price the monopolist could charge and still sell fish? $ (b) what is total revenue at that highest price? $ (c) what rate of output maximizes total revenue? bushels (d) what rate of output maximizes total profit? bushels (e) what is mr at that rate of output? $ (f) what is the price at the profit-maximizing rate of output? $?

Answer 1

a) $13 would be the highest price the monopolist could charge and still sell fish. b) $13 is the total revenue at that highest price. c) The rate of output that maximizes total revenue is 7 bushels. d) The rate of output that maximizes total profit is 4 bushels. e) $7 is the MR at that rate of output. f) The price at the profit-maximizing rate of output is $10.