A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.At this output,average total cost is $15.What is the total profit earned?

Question

Quizplus · Accepted Answer

To find the total profit earned, we need to first find the total revenue and total cost at 15 units of output.

Total revenue = price x quantity = $38 x 15 = $570 
Total cost = average total cost x quantity = $15 x 15 = $225

Therefore, total profit = total revenue - total cost = $570 - $225 = $345.

Hence, the answer is choice C.

A Single-Price Monopoly Has Marginal Revenue and Marginal Cost Equal