Exhibit 9.2

-Refer to Exhibit 9.2.A non-discriminating,profit-maximizing monopolist will earn a profit of _____ per unit of output.

Question

Exhibit 9.2
 
-Refer to Exhibit 9.2.A non-discriminating,profit-maximizing monopolist will earn a profit of _____ per unit of output.

Quizplus · Accepted Answer

To determine the profit per unit of output of a monopolist, we need to find the difference between the price and the average total cost (ATC). In this case, the monopolist produces where MR = MC, which is at an output of 6 units. The price corresponding to this output is $16. The ATC at this output is $12. Hence, the profit per unit of output is $4 ($16 - $12). So, the correct choice is C.

Exhibit 9.2 -Refer to Exhibit 9.2.A Non-Discriminating,profit-Maximizing Monopolist Will Earn a Profit