Total Revenue and Profit in Monopoly Market
What is the total revenue at the profit-maximizing rate of output in the given figure?
Choose one:
a. $22.00
b. $6.40
c. $4.00
d. $16.00
What is the total profit at the profit-maximizing rate of output in the given figure?
Choose one:
a. $16.00
b. $5.50
c. $6.00
d. $22.00
What is the monopolist's profit-maximizing price with the given demand and average cost equations?
Choose one:
a. $4,200
b. $8,250
c. $8,391
d. $8,500
Answer:
In the first figure, the total revenue at the profit-maximizing rate of output is $24.00.
In the second figure, the total profit at the profit-maximizing rate of output is $16.00.
In the third question, the monopolist's profit-maximizing price is $7,650.