Figure 15-7
-Refer to Figure 15-7. A profit-maximizing monopolist would earn profits of
A)$96.
B)$117.
C)$120.
D)$126.

Name: Figure 15-7 -Refer to Figure 15-7. A profit-maximizing monopolist would earn profits of A)$96. B)$117. C)$120. D)$126.
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Question

Figure 15-7 
-Refer to Figure 15-7. A profit-maximizing monopolist would earn profits of
A)$96. 
B)$117. 
C)$120. 
D)$126.

Quizplus · Accepted Answer

At the profit-maximizing quantity of 6 units, the monopolist can charge a price of $20, resulting in a total revenue of $120. From this, we subtract the total cost of producing 6 units, which is $60, to find the profit of $60.

Figure 15-7 -Refer to Figure 15-7. a Profit-Maximizing Monopolist Would Earn Profits