Figure 8.4 Figure 8.4 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.4.The amount of the monopoly's total revenue is -.

Question

Figure 8.4  Figure 8.4 shows the demand and cost curves for a monopolist.
-Refer to Figure 8.4.The amount of the monopoly's total revenue is -.

Quizplus · Accepted Answer

The monopoly's total revenue is the area of the rectangle formed by the price and quantity axes, which is (P*Q) = (60-30)*(600-180) = $20,400. This is the maximum revenue the monopoly can obtain at the profit-maximizing quantity of 420 units. Choice B is the correct answer.

Figure 84 Figure 8