-The above figure shows the demand and cost curves for a monopolist. What is the maximum economic profit this firm can make?
A) zero
B) $400
C) $100
D) $200

Question

-The above figure shows the demand and cost curves for a monopolist. What is the maximum economic profit this firm can make?
A) zero 
B) $400 
C) $100 
D) $200

Quizplus · Accepted Answer

The maximum economic profit for a monopolist is found where marginal cost (MC) equals marginal revenue (MR), and the price is determined from the demand curve. The profit is the difference between total revenue and total cost at this output level. Based on the given options, $200 is the maximum profit achievable.

-The Above Figure Shows the Demand and Cost Curves for a Monopolist