-The figure above shows the demand and cost curves for a single-price monopoly. The firm's economic profit equals
A) $0.
B) $300.
C) $100.
D) $50.

Question

-The figure above shows the demand and cost curves for a single-price monopoly. The firm's economic profit equals
A) $0. 
B) $300. 
C) $100. 
D) $50.

Quizplus · Accepted Answer

The economic profit for a monopoly is calculated as (Price - Average Total Cost) x Quantity. The figure would show the price, average total cost, and quantity at the profit-maximizing output level, allowing for the calculation of economic profit.

-The Figure Above Shows the Demand and Cost Curves for a Single-Price