Which of the following formulas would correctly calculate a monopolist's profit?
A) profit = price - marginal cost
B) profit = price - average total cost
C) profit = (price - marginal cost)* quantity
D) profit = (price - average total cost)* quantity

Question

Quizplus · Accepted Answer

Profit for a monopolist is calculated as total revenue minus total cost, which is (price - average total cost) multiplied by quantity.

Which of the Following Formulas Would Correctly Calculate a Monopolist's