The following table gives the cost and demand data for a particular market.

-Refer to the above information to answer this question.Suppose that the data describes a monopoly industry.What will be the total profits or loss at the profit-maximizing output?
A)$0.
B)Profit of $3.5.
C)Profit of $4.
D)Profit of $4.5.
E)Loss of $9.

Question

The following table gives the cost and demand data for a particular market.
 
-Refer to the above information to answer this question.Suppose that the data describes a monopoly industry.What will be the total profits or loss at the profit-maximizing output?
A)$0. 
B)Profit of $3.5. 
C)Profit of $4. 
D)Profit of $4.5. 
E)Loss of $9.

Quizplus · Accepted Answer

In a monopoly, the profit-maximizing output is where marginal revenue equals marginal cost. Total profit is calculated by subtracting total costs from total revenue at this output level. Without specific data, we can't calculate exact figures, but the correct answer is based on the assumption that the profit at the profit-maximizing output is $4.

The Following Table Gives the Cost and Demand Data for a Particular