-An unregulated, single-price monopoly is shown in the figure above. If its fixed cost is $20, the monopoly's total economic profit when it is maximizing its profit will be
A) negative.
B) $0.
C) $25.
D) $50.

Question

-An unregulated, single-price monopoly is shown in the figure above. If its fixed cost is $20, the monopoly's total economic profit when it is maximizing its profit will be
A) negative. 
B) $0. 
C) $25. 
D) $50.

Quizplus · Accepted Answer

The monopoly maximizes profit where marginal cost equals marginal revenue. The total economic profit is calculated as total revenue minus total cost, including fixed costs. Given the fixed cost of $20, the profit is $25.

-An Unregulated, Single-Price Monopoly Is Shown in the Figure Above