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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 $60 faces the demand curve plotted in the graph, then the monopolist's total revenue

Question

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 $60 faces the demand curve plotted in the graph, then the monopolist's total revenue

Quizplus · Accepted Answer

Total revenue for a monopolist is maximized where marginal revenue equals marginal cost. If the unit cost is constant at $60, the monopolist will produce where the marginal revenue curve intersects this cost, which typically results in a quantity where the demand curve is above the marginal cost, indicating a higher price. The total revenue is then calculated as the price at which the goods are sold times the quantity sold. Without the specific graph details, the correct answer relies on understanding this principle, but given the options and the typical behavior of a monopolist, the total revenue would be calculated based on the price and quantity where marginal revenue equals marginal cost, which is not explicitly provided here.

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