Calculation of monopolist’s profit.
Answer to Problem 4MCQ
(d) 160.
Explanation of Solution
The profit-maximizing level of output is 4 because marginal revenue and marginal cost intersect each other, at this level of output, the price charged by the monopolist is $60.
The
Hence, option (d) is correct.
Introduction:
Profit is the difference between total revenue and total cost. In the diagram, the green shaded area is the profit. The monopolist market consists of a single seller and a large number of buyers. Seller practice
Chapter 61 Solutions
Krugman's Economics For The Ap® Course
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