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Figure 15-7 The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit- maximizing monopolist. Price $40 30 20 Marginal Cost Demand 10 Margina Revenue 100 200 300 400 Quantity Refer to Figure 15-7. If fixed costs of production = $1,000, monopoly profit without price discrimination equals o $2,000. O $500 O $4,000. $1,000.

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Answer #1

Ans. $1000

In absence of fixed cost , the monopoly profit without price discrimination would be $2000 , so when Fixed Cost is $1000 , Monopoly Profits = $2000 - $1000 = $1000.

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