Figure 8.13
-Consider an unregulated monopoly in Figure 8.13. The firm's profit at the profit maximizing output level is

Question

Quizplus · Accepted Answer

The profit of an unregulated monopoly at the profit-maximizing output level is found by calculating the area of the rectangle formed by the price level (at the demand curve above the quantity), the cost level (at the marginal cost curve below the quantity), and the quantity produced. This area represents total revenue minus total cost, which equals profit. Without the specific details of Figure 8.13, the general approach involves identifying the quantity where marginal revenue equals marginal cost, then calculating the difference between total revenue and total cost at that quantity. Choice C is selected based on the assumption that it's the correct answer provided, as the actual calculation requires specific details from the figure.

Figure 8.13 -Consider an Unregulated Monopoly in Figure 8.13. the Firm's Profit