Figure 16-6 Watanabe Sensei Operates the Only Martial Arts

Figure 16-6 Watanabe Sensei operates the only martial arts school in Hartfield. For simplicity, assume that consumers have identical demand curves and that Sensei knows what this demand curve is. Figure 16-6 shows this demand curve.
-Refer to Figure 16-6. If Sensei acts as a single-price monopolist, his profit-maximizing price is ________ and the number of classes sold is ________.

A) P₀; Q₀
B) P₀; Q₁
C) P₁; Q₀
D) P₁; Q₁

Correct Answer:

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