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24 April, 15:24

What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $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.

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  1. 24 April, 18:26
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    monopolist profile is $70

    Explanation:

    given data

    profit-maximizing price = $12

    output = 10 units

    marginal cost = $6

    average total cost = $5

    to find out

    what is monopolist profile

    solution

    we know that Profit is express as

    profit = Total Revenue - Total Cost ... 1

    so here total revenue is

    Total Revenue = Price * Quantities

    Total Revenue = 12 * 10 = $120

    and total cost is

    Total Cost = Average cost * Quantities

    Total Cost = 5 * 10 = $50

    so here from equation 1

    profit = $120 - $50

    so monopolist profile is $70
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