Exhibit 24-9

-Refer to Exhibit 24-9.A single-price monopolist earns a total profit of __________ when it produces and sells 20 units of its good.

Question

Exhibit 24-9
 
-Refer to Exhibit 24-9.A single-price monopolist earns a total profit of __________ when it produces and sells 20 units of its good.

Quizplus · Accepted Answer

The monopolist's total profit is equal to the difference between its total revenue and its total cost. At a quantity of 20 units, the monopolist's total revenue is $200 and its total cost is $120. Therefore, the monopolist's total profit is $80.

Exhibit 24-9 -Refer to Exhibit 24-9.A Single-Price Monopolist Earns a Total Profit