The following table shows the total revenue and total cost for a monopolist at various levels of output.
Table 11-2 $$\begin{array} { | c | c | c | }
\hline \text { Output } & \text { Total Revenue } & \text { Total Cost } \
\hline 1 & 12 & 22 \
\hline 2 & 26 & 26 \
\hline 3 & 50 & 32 \
\hline 4 & 58 & 40 \
\hline 5 & 60 & 51 \
\hline 6 & 61 & 66 \
\hline 7 & 58 & 86 \
\hline 8 & 48 & 112 \
\hline 9 & 36 & 142 \
\hline
\end{array}$$
-Refer to Table 11-2.The economic profit earned by the firm by producing the profit-maximizing level of output is _____.
A)$13
B)$9
C)$18
D)$4

Question

The following table shows the total revenue and total cost for a monopolist at various levels of output.
Table 11-2 $$\begin{array} { | c | c | c | } 
\hline \text { Output } & \text { Total Revenue } & \text { Total Cost } \
\hline 1 & 12 & 22 \
\hline 2 & 26 & 26 \
\hline 3 & 50 & 32 \
\hline 4 & 58 & 40 \
\hline 5 & 60 & 51 \
\hline 6 & 61 & 66 \
\hline 7 & 58 & 86 \
\hline 8 & 48 & 112 \
\hline 9 & 36 & 142 \
\hline
\end{array}$$
-Refer to Table 11-2.The economic profit earned by the firm by producing the profit-maximizing level of output is _____.
A)$13
B)$9
C)$18
D)$4

Quizplus · Accepted Answer

The profit-maximizing output is 3 units, where total revenue is $50 and total cost is $32. The economic profit is $50 - $32 = $18.

The Following Table Shows the Total Revenue and Total Cost