A monopolist faces the following demand curve:

The monopolist has total fixed costs of $40 and a constant marginal cost of $5.At the profit-maximizing level of output,the monopolist's profit is
A) $88.
B) $8.
C) $6.
D) We do not have enough information to determine profit.

Question

A monopolist faces the following demand curve:

The monopolist has total fixed costs of $40 and a constant marginal cost of $5.At the profit-maximizing level of output,the monopolist's profit is
A) $88. 
B) $8. 
C) $6. 
D) We do not have enough information to determine profit.

Quizplus · Accepted Answer

The Answer of A monopolist faces the following demand curve:

The monopolist has total fixed costs of $40 and a constant marginal cost of $5.At the profit-maximizing level of output,the monopolist's profit is
A) $88. 
B) $8. 
C) $6. 
D) We do not have enough information to determine profit.

A Monopolist Faces the Following Demand Curve