-Figure 10-11 shows a single-price monopolist.The maximum level of profit that could be achieved is
A)-$20
B)$20
C)$300
D)$280
E)$40

Question

-Figure 10-11 shows a single-price monopolist.The maximum level of profit that could be achieved is
A)-$20 
B)$20 
C)$300 
D)$280 
E)$40

Quizplus · Accepted Answer

The maximum level of profit that could be achieved is $20. This is because the monopolist is able to set a price that is above the marginal cost of production, and the quantity demanded at that price is greater than the quantity supplied at the marginal cost of production.

-Figure 10-11 Shows a Single-Price Monopolist