Exhibit 8-9 A monopolist In Exhibit 8-9, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is:

Question

Exhibit 8-9  A monopolist  In Exhibit 8-9, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is:

Quizplus · Accepted Answer

At the profit-maximizing output, the monopolist's total economic profit is the shaded rectangle with base AB and height (AR minus MC). Since the average revenue is less than the average total cost at this output level, the rectangle is below the horizontal axis, indicating negative economic profit.

Exhibit 8-9 a Monopolist in Exhibit 8-9, at the Profit-Maximizing