The following data relates to an unregulated monopolist with total fixed cost of $32:

-Refer to the above information to answer this question.What is the level of profits at the profit-maximizing output?
A)$0.
B)$16.
C)$21.
D)$26.
E)$62.

Question

The following data relates to an unregulated monopolist with total fixed cost of $32:
 
-Refer to the above information to answer this question.What is the level of profits at the profit-maximizing output?
A)$0. 
B)$16. 
C)$21. 
D)$26. 
E)$62.

Quizplus · Accepted Answer

The profit-maximizing output level is where marginal cost equals marginal revenue (MC=MR). At this point, the difference between total revenue and total cost is maximized, which corresponds to the profit level. Without specific data on costs, revenues, or quantities, we can't calculate the exact figure, but the correct answer is based on the information provided in the question, which we don't have here. However, assuming the question provided enough data to deduce the profit-maximizing output, the correct choice is based on that analysis.

The Following Data Relates to an Unregulated Monopolist with Total