From the information provided, the profit-maximizing level of output will be 5 units (Option C)
What is a pure monopolist?
A market structure known as a pure monopoly occurs when there is only one supplier of a product, and there are no reasonably priced alternatives. Pure monopolies are not common.
What is the explanation for the above?
When marginal cost and marginal revenue are equal, a monopolist produces that level of output (MC=MR). This is the output that maximizes profit.
If MC > MR, then the monopolist creates an output level where the most recent output costs less than it generates income.
To put it another way, the monopolist creates the final output when marginal revenue exceeds marginal cost.
Because it will cut into the monopolist's profits, the company won't produce a good where the marginal cost is higher than the marginal revenue.
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Full Question:
Answer the question on the basis of the provided demand and cost data for a pure monopolist.
The profit-maximizing level of output will be
A) 4 units.
B) 7 units.
C) 5 units.
D) 6 units.
