Suppose that the profit maximizing level of output for the monopolist is 100 units, and ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. What is the monopoly's profit?
A) -$1000
B) $4500
C) $0
D) $3500

Question

Quizplus · Accepted Answer

The profit is calculated as (P - ATC) * Quantity. Here, P = ATC = $45, so (45 - 45) * 100 = $0.

Suppose That the Profit Maximizing Level of Output for the Monopolist