Exhibit 9-4: A MonopolyTotalQuantityTotal FixedVariablePriceDemanded CostCost$100$20$0901$202080$2048703$2078604$2011050$20150Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profitsof aboutO $118.00O $112.00O $110.00O$120.002.

In a market, profit is carried out by the difference between total revenue and total cost.

Exhibit 9-4: A Monopoly Quantity Total Fixed Total Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 3. $20 78 60 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $118.00 O$112.00 O $110.00 O$120.00 4 5

Exhibit 9-4: A Monopoly Quantity Total Fixed Total Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 3. $20 78 60 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $118.00 O$112.00 O $110.00 O$120.00 4 5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 20RQ: How can a monopolist identify the profit-maximizing level of output if it knows its total revenue...

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Question

Exhibit 9-4: A Monopoly
Total
Quantity
Total Fixed
Variable
Price
Demanded Cost
Cost
$100
$20
$0
90
1
$20
20
80
$20
48
70
3
$20
78
60
4
$20
110
50
$20
150
Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits
of about
O $118.00
O $112.00
O $110.00
O$120.00
2.

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