Table 17-12
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.
-Refer to Table 17-12. If the market for gasoline in Driveaway is a monopoly, then the monopolist's maximum profit is

Question

Table 17-12
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. 
-Refer to Table 17-12. If the market for gasoline in Driveaway is a monopoly, then the monopolist's maximum profit is

Quizplus · Accepted Answer

In a monopoly, the maximum profit is calculated by finding the quantity where marginal cost equals marginal revenue and then using the demand curve to find the price. The profit is the difference between total revenue and total cost at that quantity. Based on the given options, $450 is the maximum profit achievable by the monopolist.

Table 17-12 the Table Shows the Town of Driveaway's Demand Schedule for Schedule