Question on: JAMB Economics - 2004

The profit-maximizing output for a monopolist is where marginal cost (MC) equals marginal revenue (MR). In the diagram, this occurs at the intersection of the MC and MR curves. 1. **Identify the MC and MR curves:** Locate the Marginal Cost (MC) curve and the Marginal Revenue (MR) curve on the graph. 2. **Find the intersection:** Determine the point where the MC and MR curves intersect. 3. **Trace down to the quantity axis:** From the intersection point, draw a vertical line down to the quantity axis (x-axis). The point where this line meets the quantity axis represents the profit-maximizing output level. In the diagram, this point corresponds to Q2.