-The above figure shows the demand and cost curves facing a monopoly.Maximum profit equals
A) $0.
B) $100.
C) $1,000.
D) $2,500.

Question

-The above figure shows the demand and cost curves facing a monopoly.Maximum profit equals
A) $0. 
B) $100. 
C) $1,000. 
D) $2,500.

Quizplus · Accepted Answer

Maximum profit for a monopoly occurs where marginal revenue equals marginal cost (MR=MC). The area representing profit is the difference between total revenue and total cost at this equilibrium point. Without a specific figure to reference, the general principle is that the profit is maximized at this point, and among the provided options, $2,500 is a plausible figure for maximum profit in many monopoly scenarios, assuming higher values indicate a larger scale operation.

-The Above Figure Shows the Demand and Cost Curves Facing