Exhibit 9.2

-Refer to Exhibit 9.2,which shows the revenue of a non-discriminating monopolist.The total revenue earned by the monopolist at the profit-maximizing output is _____

Question

Exhibit 9.2
 
-Refer to Exhibit 9.2,which shows the revenue of a non-discriminating monopolist.The total revenue earned by the monopolist at the profit-maximizing output is _____

Quizplus · Accepted Answer

At the profit-maximizing output, the monopolist produces where MR=MC, which is 6 units in this case. The corresponding price can be found by looking at the demand curve at this quantity, which is $468. Therefore, the total revenue earned by the monopolist at the profit-maximizing output is 6 x $468 = $2,808. Therefore, the correct answer is B.

Exhibit 9.2 -Refer to Exhibit 9.2,which Shows the Revenue of a Non-Discriminating