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-Refer to the graph of demand and marginal revenue. If a profit-maximizing monopolist with a constant unit cost equal to $20 faces the demand curve plotted in the graph, then the monopolist's total revenue

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Use the following to answer questions below
 
-Refer to the graph of demand and marginal revenue. If a profit-maximizing monopolist with a constant unit cost equal to $20 faces the demand curve plotted in the graph, then the monopolist's total revenue

Quizplus · Accepted Answer

The monopolist maximizes profit where marginal revenue equals marginal cost. If the constant unit cost is $20, the monopolist will produce where marginal revenue is also $20. The total revenue is calculated by multiplying the price at this quantity by the quantity itself, which results in $240.

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