Question
Considering profit maximization occurs where MR = MC, clearly indicate in the diagram below the profit maximizing production and price of a single-price monopolist (1).
Considering profit maximization occurs where MR = MC, clearly indicate in the diagram below the profit maximizing production and price of a single-price monopolist (1). Also indicate the monopolist's profit (technically, profit contribution), the consumers' surplus, and deadweight loss (2).
To better understand the profit maximizing function, we plot broken lines, to arrive with the number of jobs. It is seen that the Marginal Revenue for the first 2 jobs is higher than the Marginal Cost. In this case, the seller would not want to take job 3, as MR
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