The table below shows a monopolist's demand curve and the cost information for the production
of its good. What will their profits equal?
Solution
Therefore,The correct answer is option (a) $1,000
Total Price Total Cost Profit
1 units x $100 = $100 $100 $0
20 units x $80 = $1,600 400 1,200
30 units x $60 = $1,800 800 1,000
40 units x $40 = $1,600 1,400 200
50 units x $20 = $1,000 2,400 (1,400)
$7,000 $6,000 $1,000