**Exhibit 9-4: A Monopoly**| Price | Quantity Demanded | Total Fixed Cost | Total Variable Cost ||-------|-------------------|------------------|---------------------|| $100 | 0 | $20 | $0 || $90 | 1 | $20 | $20 || $80 | 2 | $20 | $48 || $70 | 3 | $20 | $78 || $60 | 4 | $20 | $110 || $50 | 5 | $20 | $150 |**Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profit of about _______.**- $112.00- $118.00- $110.00- $120.00**Explanation:**The table in Exhibit 9-4 represents the relationship between price, quantity demanded, and the costs associated with producing different quantities in a monopoly setting. - **Price**: The selling price per unit at different levels of quantity demanded.- **Quantity Demanded**: The number of units consumers are willing to buy at each price point.- **Total Fixed Cost**: A constant cost of $20, which does not change with the level of output.- **Total Variable Cost**: Costs that change with the level of production.To calculate the total profit at 4 units:1. Total Revenue = Price * Quantity Demanded = $60 * 4 = $240.2. Total Cost = Total Fixed Cost + Total Variable Cost = $20 + $110 = $130.3. Total Profit = Total Revenue - Total Cost = $240 - $130 = $110.Therefore, the monopolist earns a total profit of about $110.00 when the output level is 4 units.

Given: Q=4 units then, P=60 TFC=20 TVC=110

Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 2 $20 48 70 3 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $112.00 O $118.00 O $110.00 $120.00

Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 2 $20 48 70 3 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $112.00 O $118.00 O $110.00 $120.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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of aboul $92,00 Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 3 units, the monopolist earns a total profits of about O $80.00 $92.00 O $112.00 O$110.00 2. 3. 5.
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