Exhibit 24-3

-Refer to Exhibit 24-3.The profit of the single-price monopolist is

Question

Exhibit 24-3
 
-Refer to Exhibit 24-3.The profit of the single-price monopolist is

Quizplus · Accepted Answer

The profit of the single-price monopolist is the difference between total revenue and total cost. From the given information, we can see that the demand curve intersects with the marginal cost curve at a quantity of 10 units, where the price is $25. At this price, the monopolist's total revenue is $250 (10 units x $25 per unit), and the total cost is $175 (10 units x $17.50 per unit). Therefore, the monopolist's profit is $75, which is positive.

Exhibit 24-3 -Refer to Exhibit 24-3.The Profit of the Single-Price Monopolist Is