The above table shows the quantity demanded at varying prices and the corresponding marginal cost of production for a mon firm.
-Refer to the table above. If the monopoly produces 20 units, charges the corresponding price of $360, and its average total cost to produce the 20 units is $187, what is their profit or loss?

Question

Quizplus · Accepted Answer

The profit is calculated as (Price - Average Total Cost) * Quantity. So, for 20 units at a price of $360 and an average total cost of $187, the profit is (360 - 187) * 20 = $3,460.

The Above Table Shows the Quantity Demanded at Varying Prices