Figure 5.2 Cost and Demand Conditions of a Monopolist

-Refer to Figure 5.2. If the monopoly maximizes profit, total profit will equal
A) $950
B) $1,150
C) $1,350
D) $1,550

Question

Figure 5.2 Cost and Demand Conditions of a Monopolist
 
-Refer to Figure 5.2. If the monopoly maximizes profit, total profit will equal
A) $950 
B) $1,150 
C) $1,350 
D) $1,550

Quizplus · Accepted Answer

Total profit for a monopoly is calculated by subtracting total cost from total revenue. Without the specific details from Figure 5.2, such as the price, quantity, or cost information, it's impossible to accurately determine the total profit. However, if the correct answer is given as C) $1,350, it suggests that with the provided data in Figure 5.2, when the monopoly maximizes its profit, the difference between its total revenue and total cost equals $1,350.

Figure 52 Cost and Demand Conditions of a Monopolist