Exhibit 8-10 A monopolist In Exhibit 8-10, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is:

Question

Exhibit 8-10  A monopolist  In Exhibit 8-10, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is:

Quizplus · Accepted Answer

At the profit-maximizing or loss-minimizing output, the monopolist's marginal revenue equals marginal cost. The monopolist's total economic profit is the difference between total revenue and total cost at this output level. As the monopolist charges a price higher than the marginal cost, the total cost will be higher than total revenue which results in a negative total economic profit.

Exhibit 8-10 a Monopolist in Exhibit 8-10, at the Profit-Maximizing