Table 15-6.
A monopolist faces the following demand curve:
Quantity
Price
1
$15
2
$12
3
$9
4
$6
5
$3
Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to $5 and a variable cost equal to $4 per unit for all units produced. What would the total profit be if she charged $6 per unit for her product?
a.
$1
b.
$3
c.
$8
d.
$15
Table 15-6.
A monopolist faces the following demand curve:
|
Quantity |
Price |
|
1 |
$15 |
|
2 |
$12 |
|
3 |
$9 |
|
4 |
$6 |
|
5 |
$3 |
Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to $5 and a variable cost equal to $4 per unit for all units produced. What would the total profit be if she charged $6 per unit for her product?
| a. |
$1 |
|
| b. |
$3 |
|
| c. |
$8 |
|
| d. |
$15 |
Related textbook solutions
Related questions
Table 15-10 The monopolist faces the following demand curve:
| Price | Quantity |
| $10 | 5 |
| $9 | 10 |
| $8 | 16 |
| $7 | 23 |
| $6 | 31 |
| $5 | 45 |
| $4 | 52 |
| $3 | 60 |
Refer to Table 15-10. If the monopolist has total fixed costs of $40 and a constant marginal cost of $5, what is the profit-maximizing level of output?
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Units of labor |
Units of Output |
Average Product |
Marginal Product |
Fixed Cost |
Variable Cost |
Total Cost |
Average Variable Cost |
Average Total Cost |
Marginal Cost |
Profit |
Producer Surplus |
|
1 |
5 |
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|
2 |
15 |
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|
3 |
30 |
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|
4 |
50 |
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|
5 |
65 |
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|
6 |
77 |
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|
7 |
86 |
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|
8 |
94 |
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|
9 |
98 |
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|
10 |
96 |
The firm has fixed costs of $50, labor costs the firm $10 per unit, and the firm faces a market-determined price of $2.00 per unit of output. Complete the above table.
