Answer :


The total cost of monopolist firm is zero, so the profit will be the maximum where TR is maximum.


At the 6th unit of output the firm will maximise its profit and the short run equilibrium price will be Rs 50.


Profit = TR – TC


= 300 – 0


= Rs 300


If the total cost is Rs 1000, then


Profit = TR – TC


= 300 – 1000


= - Rs 700


In this case the firm is earning loss and not profit. So, it will stop its production in the long run.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

If duopoly behaviNCERT - Introductory Microeconomics

Explain why the dNCERT - Introductory Microeconomics

What is meant by NCERT - Introductory Microeconomics

List the three diNCERT - Introductory Microeconomics

What is the reasoNCERT - Introductory Microeconomics

Will the monopoliNCERT - Introductory Microeconomics

The market demandNCERT - Introductory Microeconomics

What is the valueNCERT - Introductory Microeconomics

Comment on the shNCERT - Introductory Microeconomics