If a monopolist's price is $50 at 63 units of output, and marginal revenue equals marginal cost, and average total cost equals $43, then what is the firm's total profit?

Question

Quizplus · Accepted Answer

The firm's total profit is calculated by subtracting total costs from total revenue. Total revenue is price times quantity (50 * 63 = $3150). Total cost is average total cost times quantity (43 * 63 = $2709). Profit = Total Revenue - Total Costs = $3150 - $2709 = $441.

If a Monopolist's Price Is $50 at 63 Units of Output