The graph represents the market for Wizard and Witch wands, a market currently captured by the monopolist, Ollivander. Use this graph to answer the proceeding questions.

At what price does Ollivander sell his wands for, and how many units does he sell?

Solutions

Expert Solution

The price will be $4 and the units will be 40 units.

Reason:

The price of the monopolist is the price just above the intersection of MR and MC curve. This happens at the price of $ 4. At this price , the quantity is 40 units.

Hence option (C) will only be correct.

The price will be $4 and the units will be 40 units.

Nabeel answered 1 year ago

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