-The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of
A) $15.
B) $25.
C) $40.
D) $45.

Question

-The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of
A) $15. 
B) $25. 
C) $40. 
D) $45.

Quizplus · Accepted Answer

The monopolist's profit is equal to total revenue minus total cost. At the profit-maximizing output of 5 units, total revenue is $50 and total cost is $35, so the profit is $15.

-The Table Above Shows the Demand and Costs for a Single-Price