On a diagram with quantity on the horizontal axis and price on the vertical axis, the short run per unit profit for a monopolist is a. a vertical distance. O b. the area of a rectangle. C. a horizontal distance. O d. area of a triangle.
On a diagram with quantity on the horizontal axis and price on the vertical axis, the short run per unit profit for a monopolist is a. a vertical distance. O b. the area of a rectangle. C. a horizontal distance. O d. area of a triangle.
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 24RQ: How does the quantity produced and price charged by a monopolist compare to that of a perfectly...
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Transcribed Image Text:On a diagram with quantity on the horizontal axis and price on the vertical axis, the short run per unit profit for a monopolist is
a. a vertical distance.
b. the area of a rectangle.
C. a horizontal distance.
d. area of a triangle.
Expert Solution
Step 1
In a monopoly profit is maximized at the point where the marginal revenue curve intersects the marginal cost curve. And that quantity is the quantity produced by the monopoly.
For monopoly, the profit is:
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