According to the figure below, what is the maximum profit of this monopoly? Hint: don forget to subtract total cost from total revenue. Price (S)) 18 16 14 12 10 8 642 2 $60 $80 $240 $-120 MC1 ATC1 AVC₁ MR 10 20 30 40 50 60 70 80 90 Quantity

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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According to the figure below, what is the maximum profit of this monopoly? Hint: don't
forget to subtract total cost from total revenue.
Price ($)
18
16
14
12
10
8
6
4
42
$60
$80
$240
$-120
MC1
АТС1
AVC1
MR₁
10 20 30 40 50 60 70 80 90
Quantity
Transcribed Image Text:According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget to subtract total cost from total revenue. Price ($) 18 16 14 12 10 8 6 4 42 $60 $80 $240 $-120 MC1 АТС1 AVC1 MR₁ 10 20 30 40 50 60 70 80 90 Quantity
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