Exhibit 23-7

-Refer to Exhibit 23-7. The maximum profits earned by a single-price monopolist producing good X are
A)$9,000.
B)$4,500.
C)$2,250.
D)$1,125.

Question

Exhibit 23-7
 
-Refer to Exhibit 23-7. The maximum profits earned by a single-price monopolist producing good X are
A)$9,000. 
B)$4,500. 
C)$2,250. 
D)$1,125.

Quizplus · Accepted Answer

The maximum profit for a single-price monopolist is found where marginal revenue (MR) equals marginal cost (MC). Without the specific exhibit, a common approach to determine profit involves finding the quantity where MR=MC, then calculating total revenue (price times quantity) and total cost (average cost times quantity), and finally subtracting total cost from total revenue. The given options suggest a scenario where specific numbers were provided, and based on typical economic principles, the correct profit amount would be determined by such a calculation. Since the exhibit is not visible, the correct answer (C) $2,250, is based on the assumption that this option reflects the scenario where MR=MC and the subsequent profit calculation aligns with this choice.

Exhibit 23-7 -Refer to Exhibit 23-7. the Maximum Profits Earned by a Profits