-Dee's TV Repair is the only TV repair shop in a small town. Dee is a single-price monopolist. Based on the demand and cost information in the table above, what is the amount of economic profit made or loss incurred at the quantity of TV repairs that profits are maximized or losses minimized?

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Quizplus · Accepted Answer

Dee's TV Repair maximizes profit where marginal cost equals marginal revenue. At this point, the price exceeds average total cost, resulting in a profit. The economic profit is calculated as total revenue minus total cost, which is $200.

-Dee's TV Repair Is the Only TV Repair Shop in a Small