The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output.The firm does not incur a fixed cost of production. Table 24.5
Refer to Table 24.5 and calculate the total revenue earned by the monopolist at the profit maximizing level of output.

Question

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output.The firm does not incur a fixed cost of production. Table 24.5
 Refer to Table 24.5 and calculate the total revenue earned by the monopolist at the profit maximizing level of output.

Quizplus · Accepted Answer

To find the profit maximizing level of output, we need to look at where marginal revenue equals marginal cost. From the table, we can see that this occurs at an output level of 4 units.

At an output level of 4 units, the price the monopolist can charge is $13. The total revenue earned at this output level is the price multiplied by the quantity, so:

Total revenue = $13 x 4 = $52

Therefore, the answer is C) $52.

The Table Given Below Shows the Price, Marginal Revenue and Marginal