-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total economic profit when it is maximizing its profit will be
A) negative.
B) $0.
C) $25.
D) $50.

Question

-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total economic profit when it is maximizing its profit will be
A) negative. 
B) $0. 
C) $25. 
D) $50.

Quizplus · Accepted Answer

The monopoly maximizes profit where marginal cost equals marginal revenue. The total economic profit is calculated as total revenue minus total cost. Given the fixed cost of $20, the profit is $25 when the monopoly is maximizing its profit.

-An Unregulated, Single-Price Monopoly Is Shown in the Figure Above