Use the following to answer question(s): Monopoly Model

-(Exhibit: Monopoly Model) When the firm is in equilibrium, its profit is the area of rectangle:
A) SPDB.
B) IPDH.
C) ISBH.
D) 0PDJ.

Question

Use the following to answer question(s): Monopoly Model
 
-(Exhibit: Monopoly Model) When the firm is in equilibrium, its profit is the area of rectangle:
A) SPDB. 
B) IPDH. 
C) ISBH. 
D) 0PDJ.

Quizplus · Accepted Answer

In a monopoly model, the profit is calculated as the difference between total revenue and total cost. The area of rectangle SPDB represents the profit, where SP is the price, PD is the quantity, and DB is the average total cost.

Use the Following to Answer Question(s): Monopoly Model