For a profit-maximizing monopolist,profits are given by ________.
A) [Price - Marginal cost] Quantity
B) [Price - Average total cost] Quantity
C) Marginal revenue - Total cost
D) Total revenue - Marginal cost

Question

Quizplus · Accepted Answer

Profits for a profit-maximizing monopolist are calculated by subtracting the average total cost from the price for each unit sold and then multiplying by the quantity sold. This captures the difference between what it costs to produce the goods and the price at which they are sold, over all units sold.

For a Profit-Maximizing Monopolist,profits Are Given by ________