Assume the firm is a profit-maximizing monopoly. Using the data in the graph, calculate the firm's total profit.
Total profit = (price - ATC) × output
= ($16.00 - $8.00) × 140
= $8.00 × 140
= $1,120.00
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Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000
What are the implicit costs of her business? A) $12,000 B) $30,000 C) $72,000 D) $86,000
Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is
A) clearly inconsistent with the efficient markets hypothesis. B) consistent with the efficient markets hypothesis if the earnings were not as high as anticipated. C) consistent with the efficient markets hypothesis if the earnings were not as low as anticipated. D) consistent with the efficient markets hypothesis if the favorable earnings were expected.
A line that slopes downward from left to right has a positive slope
a. True b. False Indicate whether the statement is true or false
If oligopolistic firms successfully cooperate with each other, _____
a. they may act like a monopoly and increase their prices b. they may act like a monopoly and increase their output c. they may act like perfectly competitive firms and earn normal profits d. they may act like a monopolistic firm and earn economic profits