The following figure shows the marginal revenue [MR],demand,and average cost [AC] curves for a profit-maximizing monopolist in the long run.
Figure 11-3
-Refer to Figure 11-3.The profit of the monopolist is shown by the area _____.

Question

The following figure shows the marginal revenue [MR],demand,and average cost [AC] curves for a profit-maximizing monopolist in the long run.
Figure 11-3 
-Refer to Figure 11-3.The profit of the monopolist is shown by the area _____.

Quizplus · Accepted Answer

The profit of a monopolist is represented by the area between the price and the average total cost (ATC) curve, up to the quantity produced. In this case, AFGB represents the profit area, where AF is the price, FG is the quantity, and GB is the ATC.

The Following Figure Shows the Marginal Revenue [MR],demand,and Average Cost