Exhibit 23-10

-Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns total revenue equal to what area?

Question

Exhibit 23-10
 
-Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns total revenue equal to what area?

Quizplus · Accepted Answer

The profit-maximizing single-price monopolist earns total revenue equal to the area of the rectangle 0BCQ1. This is because the monopolist sets the price at P*, which is the price that maximizes total revenue. At this price, the quantity demanded is Q1, and the total revenue is equal to P*Q1.

Exhibit 23-10 -Refer to Exhibit 23-10. the Profit-Maximizing Single-Price Monopolist Earns Total