25. What is the monopolist\'s profit under the following conditions? The profit-

Question

25. 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 $2. a. $60. b. $70. c. $100. d. $120 26. Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. all firms can eventually earn economic profits. c. there are barriers to entry b. strategic interactions between firms are important. d. each of the sellers offers a somewhat differential product.

Explanation / Answer

Q25

Answer

Profit=(P-ATC)*Q

=(12-2)*10=$100

Option c

Q26

Option d

The monopolistic competitive market produces a differentiated product and perfect competitive market produces an identical product.

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