-The above figure shows the demand and cost curves facing a monopolist.This profit-maximizing monopoly has a revenue equal to
A) $1000.
B) $5200.
C) $7500.
D) $8000.

Question

-The above figure shows the demand and cost curves facing a monopolist.This profit-maximizing monopoly has a revenue equal to
A) $1000. 
B) $5200. 
C) $7500. 
D) $8000.

Quizplus · Accepted Answer

The profit-maximizing quantity for a monopolist is where marginal cost (MC) equals marginal revenue (MR). The corresponding price on the demand curve at this quantity gives the revenue. Based on the given options, $7500 is the likely revenue at this point.

-The Above Figure Shows the Demand and Cost Curves Facing