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Sagot :
Assume that there are no fixed costs and ac = mc = $200. at the profit-maximizing output and price for a monopolist, the producer surplus is $3200.
The profit-maximizing quantity in a monopolist market is obtained by MR = MC condition.
MR and MC are intersected at point A. The price is obtained by the corresponding point of point A on the demand curve. This point is represented by point B.
The price represented by point B is 600 and the quantity is 8.
The producer surplus is calculated by the area below the price line and above the MC curve. The area is:
=(600 - 200)*(8-0)
=400*8
=3200
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