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A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for
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A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for 10 units of output is $5. What is the monopolist's profit?

a. $70
b. $100
c. $120
d. $60

User Mistaecko
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1 Answer

1 vote

Answer:

a. $70

Step-by-step explanation:

Price $12 x 10 units =$120

(-)Total cost $5 x 10 units =$50

________________________________

Profit =$70

User Ryan Li
by
5.0k points
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