Exhibit 9-4: A MonopolyTotalQuantityTotal FixedVariablePriceDemanded CostCost$100$20$0ts901$202080$204870$2078ments604$2011050$20150Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns atotal profits of aboutTutoring$112.00shboard$118.00$110.00O $120.00erts

Given: Q=4 units then, P=60 TFC=20 TVC=110

Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 2 $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 $112.00 O $118.00 O $110.00 $120.00

Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 2 $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 $112.00 O $118.00 O $110.00 $120.00

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 37P: If the transit system were allowed to operate as an unregulated monopoly, what output would it...

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Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

Exhibit 9-4: A Monopoly
Total
Quantity
Total Fixed
Variable
Price
Demanded Cost
Cost
$100
$20
$0
ts
90
1
$20
20
80
$20
48
70
$20
78
ments
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
Tutoring
$112.00
shboard
$118.00
$110.00
O $120.00
erts

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