Consider the following: The profit-maximizing price charged for goods produced is $13.The intersection of the marginal-revenue and marginal-cost curves occurs where output is 10 units,marginal cost is $8,and average total cost is $7.What is the monopolist's profit under these conditions
A)$10
B)$40
C)$60
D)$80

Question

Quizplus · Accepted Answer

The profit-maximizing price is $13, and the output is 10 units. Therefore, the monopolist's total revenue is $130. The average total cost is $7, so the total cost is $70. Therefore, the monopolist's profit is $130 - $70 = $60.

Consider the Following: the Profit-Maximizing Price Charged for Goods Produced