Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns profits equal to what area?

Question

Question

Answer 1

Answer #1

Ans.- Profit = area of rectangle ABCD

A Monopolist Produces output where MR =MC, so here Profit maximizing output is Q1 and price is B.

Profit = (P-ATC)*Q which is equal to the area of rectangle ABCD.

Answer 2

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