Use the following diagram depicting a dominant firm market to answer the following questions:

-In equilibrium, what will the dominant firm's profit be?
A) $8,100
B) $2,025
C) $4,050
D) $3,600

Question

Use the following diagram depicting a dominant firm market to answer the following questions:

-In equilibrium, what will the dominant firm's profit be?
A) $8,100 
B) $2,025 
C) $4,050 
D) $3,600

Quizplus · Accepted Answer

In equilibrium, the dominant firm's profit is calculated based on its market power and cost structure. Given the choices, $4,050 is the correct profit amount for the dominant firm in equilibrium.

Use the Following Diagram Depicting a Dominant Firm Market to Answer