Figure 15-17
-Refer to Figure 15-17. Which of the following areas represents the profit earned by this profit-maximizing monopolist?
A)BCFE
B)ABE
C)EFG
D)CFIH

Question

Figure 15-17 
-Refer to Figure 15-17. Which of the following areas represents the profit earned by this profit-maximizing monopolist?
A)BCFE 
B)ABE 
C)EFG 
D)CFIH

Quizplus · Accepted Answer

The area BCFE represents the profit earned by the monopolist, as it is the difference between total revenue (area under the demand curve up to the quantity produced) and total cost (area under the average total cost curve up to the quantity produced).

Figure 15-17 -Refer to Figure 15-17. Which of the Following Areas Represents