Figure 15-15

-Refer to Figure 15-15.If there are no fixed costs of production,monopoly profit without price discrimination equals
A) $500.
B) $1,000.
C) $2,000.
D) $4,000.

Question

Figure 15-15
 
-Refer to Figure 15-15.If there are no fixed costs of production,monopoly profit without price discrimination equals
A) $500. 
B) $1,000. 
C) $2,000. 
D) $4,000.

Quizplus · Accepted Answer

Monopoly profit equals the area of the rectangle between the demand curve and the marginal cost curve, which in this case is (20-10) x (100-0) = $2,000. Without fixed costs, this is the total profit.

Figure 15-15 -Refer to Figure 15-15.If There Are No Fixed Costs of No