Exhibit 24-7

-Refer to Exhibit 24-7.The total revenue collected by a profit-maximizing single-price monopolist is

Question

Exhibit 24-7
 
-Refer to Exhibit 24-7.The total revenue collected by a profit-maximizing single-price monopolist is

Quizplus · Accepted Answer

To find the total revenue collected by a single-price monopolist, we need to determine the quantity of output at which the marginal revenue (MR) equals zero. In this exhibit, we can see that the MR curve intersects the demand curve at Q=150. At this quantity, the price is P=$45. So the total revenue is:
Total Revenue = Price x Quantity = $45 x 150 = $6,750. Therefore, the correct answer is (C).

Exhibit 24-7 -Refer to Exhibit 24-7.The Total Revenue Collected by a Profit-Maximizing