Refer to the figure below. MC c PRICE ATC z Y х MR NO P QUANTITY...

Question

Question

Answer 1

Answer #1

Answer : The answer is option C : (B - Y) * O.

For monopolist the profit maximizing condition is MR = MC. So, here the equilibrium quantity is O where the price is B and ATC is Y.

Per unit profit = Price - ATC = B - Y

Total profit = Per unit profit * Quantity = (B - Y) * O.

Hence except option C other options are not correct. Therefore, option C is the correct answer.

Answer 2

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