(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,total surplus is:

A) $3,200.
B) $4,800
C) $1,000.
D) $1,600.

Question

shama ahmad · Accepted Answer

Final Answer : B, Explanation :  At the profit-maximizing output and price, the monopolist produces 24 units and sets a price of $400. The total surplus is the sum of producer surplus ($4,800) and consumer surplus ($0), which equals $4,800. Therefore, the correct answer is B.

(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,total surplus is:

A) $3,200.
B) $4,800
C) $1,000.
D) $1,600.

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(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,total surplus is:A) $3,200.B) $4,800C) $1,000.D) $1,600.

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Learning Objectives

Related questions

(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,total surplus is:

A) $3,200.
B) $4,800
C) $1,000.
D) $1,600.