3. (Points: 2) Calculate the monopolist\'s profit under the followingconditions.

Question

3.

(Points: 2) Calculate the monopolist's profit under the followingconditions. The intersection of the marginal revenue and marginalcost curves occurs where output is 20 units. At an output of 20units, the monopoly price is $15 per unit, the marginal cost is $8per unit, and the average variable cost is $6 per unit, and averagefixed cost is $4 per unit.

a. $180
b. $140
c. $120
d. $100

3.

(Points: 2) Calculate the monopolist's profit under the followingconditions. The intersection of the marginal revenue and marginalcost curves occurs where output is 20 units. At an output of 20units, the monopoly price is $15 per unit, the marginal cost is $8per unit, and the average variable cost is $6 per unit, and averagefixed cost is $4 per unit.

a. $180
b. $140
c. $120
d. $100

Explanation / Answer

Cost = average variable cost + average fixed cost         = $6+$4         = $10 Profit = 20*(15-10)          = $100

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