Use the figure to answer the following question(s).
Figure 11-3
-What is the maximum profit per month that the monopolist will be able to earn in Figure 11-3?
A) zero
B) approximately $20,000
C) approximately $50,000
D) approximately $100,000

Question

Use the figure to answer the following question(s).
Figure 11-3 
-What is the maximum profit per month that the monopolist will be able to earn in Figure 11-3?
A) zero 
B) approximately $20,000 
C) approximately $50,000 
D) approximately $100,000

Quizplus · Accepted Answer

The monopolist will earn the maximum profit per month when the marginal revenue equals the marginal cost. In Figure 11-3, this occurs at an output of approximately 2,000 units, where the marginal revenue curve intersects the marginal cost curve. At this output, the monopolist will be able to earn a profit of approximately $20,000 per month.

Use the Figure to Answer the Following Question(s)