Figure 15-3 Figure 15-3 shows the cost and demand curves for a monopolist.
-Refer to Figure 15-3.The monopolist earns a profit of

Question

Figure 15-3  Figure 15-3 shows the cost and demand curves for a monopolist.
-Refer to Figure 15-3.The monopolist earns a profit of

Quizplus · Accepted Answer

The profit-maximizing output for a monopolist is where MR=MC. In this case, it occurs at a quantity of 8. At this quantity, the monopolist can charge a price of $31 and will face a total cost of $8*($10+$1=$11)=$88. Therefore, the monopolist's profit will be ($31-$11)*8=$248.

Figure 15-3 Figure 15-3 Shows the Cost and Demand