Scenario $15-1$

A monopoly firm maximizes its profit by producing $Q=500$ units of output. At that level of output, its marginal revenue is $$40,$ its average revenue is $$80,$ and its average total cost is $$44.$

Refer to Scenario $15-1.$ At $Q=500,$ the firm's profit is

$$18,000.$

$$20,000$

$$22,000.$

$$40,000.$