Exhibit 23-9

-Refer to Exhibit 23-9. A single-price monopolist earns a total profit of __________ when it produces and sells 20 units of its good.

Question

Exhibit 23-9
 
-Refer to Exhibit 23-9. A single-price monopolist earns a total profit of __________ when it produces and sells 20 units of its good.

Quizplus · Accepted Answer

The monopolist's total profit is equal to the difference between its total revenue and its total cost. At a quantity of 20 units, the monopolist's total revenue is $200 (20 units x $10 per unit), and its total cost is $120 (20 units x $6 per unit). Therefore, the monopolist's total profit is $80 ($200 - $120).

Exhibit 23-9 -Refer to Exhibit 23-9. a Single-Price Monopolist Earns a Total