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Question: high wire cinema is the only movie theater in a...

Question details

High Wire Cinema is the only movie theater in a small town. The following graph shows the market demand, marginal revenue, and cost curves of this single-price monopoly.

PRICE PER TICKET (Dollars) 20 18 16 MC 14 12 ATC 10 6 MR 5 10 15 20 25 30 35 40 45 50 QUANTITY OF TICKETS

Question 7

If this monopolist wishes to maximize profits, then what price should she charge?

Select one:

a. $2

b. $4

c. $6

d. $10

e. $10

f. $12

g. $14

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